A security dealer has successfully bidden $100 million 10-year U.S. Treasury notes that carry 6% annual coupon.
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Question:
A security dealer has successfully bidden $100 million 10-year U.S. Treasury notes that carry 6% annual coupon. Instead of selling the notes directly to investors, the dealer can strip the cash flows to sell as zero coupon securities. Specify the dollar amounts and maturities of the zero coupon securities. (Note: Treasury notes pay coupon interests semiannually)
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