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1/3 Bank strips treasury bonds. It has taken a 7-year bond with a market price of $1,066.66 and sold off each annual coupon and the
1/3 Bank strips treasury bonds. It has taken a 7-year bond with a market price of $1,066.66 and sold off each annual coupon and the principle. The aggregate value of selling each year's cash flows (strips) will:
slightly exceed the original price of the Treasury bond. | ||
equal the original price of the Treasury bond. | ||
be cancelled due to stricter Dodd Frank Wall Street Reform and Consumer Protection Act. | ||
none of the above. |
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