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A 10-year T-bond is converted into STRIPs. The original T-bond has a 4% yield, 5% coupon, and pays annually. Calculate the price of the security
A 10-year T-bond is converted into STRIPs. The original T-bond has a 4% yield, 5% coupon, and pays annually. Calculate the price of the security if you wish to purchase the STRIPs created from the conversion of the coupon payment in the 3rd year.
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