A 5-year Treasury that pays semiannually has a 6% coupon and 6% yield. It is converted into STRIPS. Calculate the price of the STRIPS created from the $1,000 face value to be paid in 5 years.
A 5-year Treasury that pays semiannually has a 6% coupon and 6% yield. It is converted into STRIPS. Calculate the price of the STRIPS created from the $1,000 face value to be paid in 5 years.
Chapter5: The Time Value Of Money
Section: Chapter Questions
Problem 29P
Question
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