industrymajor
Jan 17, 2013, 10:03 AM
Fiancial Portfolio Management.
Derive the probability distribution of the 1-year HPR on a 30-year U.s Treasury bond with *% coupon if it is selling at par and the probability of its yield to maturity as follows:
Probability is .20, YTM is 11%. I need to see how to calculate price, capital gain and Holding period rate (HR).
Derive the probability distribution of the 1-year HPR on a 30-year U.s Treasury bond with *% coupon if it is selling at par and the probability of its yield to maturity as follows:
Probability is .20, YTM is 11%. I need to see how to calculate price, capital gain and Holding period rate (HR).