Person X is a graduate, who is working as a financial planner at company C. The president and congress involved in the dispute of acrimonious over the financing of debt and budget. The dispute which is not settled at the end of the year and effected the rate of interest. The responsibility of person X is to compute the risk of bond portfolio of client. Person X should explain the probable scenarios for the dispute resolution and compute rate of return for 10 year zero coupon treasury bond for each cases. To compute: The expected rate of return for the 10 year zero coupon Treasury bond.

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Chapter 2, Problem 3MC

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Person X is a graduate, who is working as a financial planner at company C. The president and congress involved in the dispute of acrimonious over the financing of debt and budget. The dispute which is not settled at the end of the year and effected the rate of interest.

The responsibility of person X is to compute the risk of bond portfolio of client. Person X should explain the probable scenarios for the dispute resolution and compute rate of return for 10 year zero coupon treasury bond for each cases.

To compute: The expected rate of return for the 10 year zero coupon Treasury bond.

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