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What is the standard deviation

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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        Required Yield

     0.1          5.50%

     0.1          5.75%

     0.6          6.00%

     0.1          6.25%

     0.1          6.50%

  1. What is your expected price when you sell the bond?
  2. What is the standard deviation?

Reference no: EM133119124

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