A strip bond is a bond in which both principal and regular coupon payments (which have been removed) are sold separately. So a strip bond is known as zero-coupon bond. The following are the yield to maturity on Canada strip bonds with various years to maturity. Years YTM, % 1.85 1 2 2.25 3 2.85 4 3.10 5 3.35 6 3.65 7 3.85 8 4.15 9 4.35 10 4.45 What is the price of a 7-year $1,000 par, 8% annual coupon bond at Year 5