For the principal STRIPS maturing in May 2017 (reported in Table 6-1 ), the asked

price at the close on Monday, May 23, 2016 (or present value), is 99.244 percent. Settlement occurs one business day after purchase, so you receive actual ownership on Wednesday, May 24, 2016. When the STRIPS matures, on May 15, 2017 (in 0.97534247 year), the STRIPS holder will receive 100 percent of the face value (or future value). Using semiannual compounding, the yield to maturity (ytm), or asked yield is calculated as:

For the principal STRIPS maturing in May 2017 (reported in Table 6-1 ), the asked price at the close on Monday, May 23, 2016 (or present value), is 99.244 percent. Settlement occurs one business day after purchase, so you receive actual ownership on Wednesday, May 24, 2016. When the STRIPS matures, on May 15, 2017 (in 0.97534247 year), the STRIPS holder will receive 100 percent of the face value (or future value). Using semiannual compounding, the yield to maturity (ytm), or asked yield is calculated as