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A 3 - year 3 % coupon Treasury bond is priced at $ 1 0 1 and a 3 - year 6 % coupon Treasury

3 -

year

3 %

coupon Treasury bond is priced at $

101

and a

3 -

year

6 %

coupon Treasury bond is priced at $

116 .

What is the fair price of a

3 -

year Treasury strip? Enter your answer in dollars, rounding to two decimal places. The answer is

86 .

How to calculate it

?

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