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%?
a) The amount of the 30th payment = $ __
b) Time of the 30th payment = __ years
c) STRIPS price = $ ___
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Financial And Managerial Accounting
Authors: Carl S. Warren, James M. Reeve, Jonathan Duchac
14th Edition
1337119202, 978-1337119207
