The YTM on a six-month Treasury STRIP is 5.8%, and the YTM on a one-year Treasury STRIP is 7.1%. All YTMs are quoted as APRS with semiannual compounding. Given this information, what would be the price of a one-year coupon bond with a coupon rate of 6.8%, semi-annual payments and a face value of $1000? The price of the bond would be $. (Round to two decimal places.)
The YTM on a six-month Treasury STRIP is 5.8%, and the YTM on a one-year Treasury STRIP is 7.1%. All YTMs are quoted as APRS with semiannual compounding. Given this information, what would be the price of a one-year coupon bond with a coupon rate of 6.8%, semi-annual payments and a face value of $1000? The price of the bond would be $. (Round to two decimal places.)
Chapter8: Analysis Of Risk And Return
Section: Chapter Questions
Problem 10P
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