Question
A newly issued 30-year treasury bond with a par value of $10,000 pays 6% coupon interest in semi-annual payments over the next 30 years. Therefore
A newly issued 30-year treasury bond with a par value of $10,000 pays 6% coupon interest in semi-annual payments over the next 30 years. Therefore this bond has a total of 61 payments. What is the current STRIPS price of the 30th payment, given that the yield to maturity is 5%?
The amount of the 30th payment = $
Time of the 30th payment = years
STRIPS price = $
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Fundamentals of Multinational Finance
Authors: Michael H. Moffett, Arthur I. Stonehill, David K. Eiteman
5th edition
205989756, 978-0205989751
