Euro-Canadian dollars

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A) Are time deposits with fixed maturities leading to illiquidity

B) Offer the borrower a lower interest rate than can be received in the domestic market

C) Both (A) and (B)

D) Neither (A) nor (B)

What is the value of a Treasury STRIP that promises to pay $100,000 in exactly five years, if the appropriate rate of interest to use in discounting the STRIPs cash flow is 6%, compounded semi-annually?

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1. $100,000
2. $134,392

C) $74,409

D) $6,000