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Problem 3 (5 points) - understating expected value and standard deviation You own a $1,000...

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Problem 3 (5 points) - understating expected value and standard deviation You own a $1,000 face value, zero-coupon bond that has 5 years of remaining maturity. You plan on selling the bond in one year and believe that the required yield next year will have the following probability distribution: Probability 0.1 0.1 0.6 0.1 0.1 Required Yield 5.50% 5.75% 6.00% 6.25% 6.50% a. What is your expected price when you sell the bond? b. What is the standard deviation

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