What would be the expected change to a 30-year bonds market

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1.Given the data below, calculate the expected return, variance, and standard deviation of the following company.In a recessionary economy, which is expected to occur with a 30% probability, the expected returns would be -5%.In an expanding economy with an expected probability of occurrence of 20%, the expected return would be 20%.In a normal economy expected to occur 50% of the time, the expected return would be 5%.

2.What would be the expected change to a 30-year bond's market price or value if its YTM increases to 9.4%? Its YTM is now 9%, it has an 8% annual coupon, $1,000 face value, it is currently priced at $897.26, and its duration is eight years.

Reference no: EM13390195

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