What is the standard deviation

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Question: You own a $1,000-par 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
0.3 6.60%
0.5 7.00%
0.2 7.20%

1. What is your expected price when you sell the bond? Please specify each step of your calculation.

2. What is the standard deviation? Please specify each step of your calculation.

Reference no: EM133287310

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