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Find the EAR of a 90-day Treasury bill with a bank discount yield of 5%. Find the YTM of a $10,000 face value treasury STRIPS
Find the EAR of a 90-day Treasury bill with a bank discount yield of 5%. Find the YTM of a $10,000 face value treasury STRIPS with a quoted price of 43.985. Assume the Treasury bill has 7.5 years to maturity. Find the Macaulay duration of a zero coupon bond with a par value of $1,000 and a maturity date 6 years in the future. The YTM of this bond is 4.5%. Find the price of a U.S. Treasury STRIPS with a face value of $4, 500, 3 years to maturity, and a YTM of 9%. Use that price to calculate the cost of the STRIP
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