Question
. Given the information below, please estimate the 5-year interest if the profit of the treasury STRIPS is $80. Treasury STRIPS: based on a 5-year
. Given the information below, please estimate the 5-year interest if the profit of the treasury STRIPS is $80.
Treasury STRIPS: based on a 5-year treasury with coupon rate of 6% and par value of $1,000. (The coupon payment is made semiannually.)
| US Treasury Bonds | ||||
| Maturity | Yield (%) |
|
|
|
| 6 Month | 1.00 |
|
|
|
| 1 year | 1.50 |
|
|
|
| 1.5 Year | 2.00 |
|
|
|
| 2 Year | 2.50 |
|
|
|
| 2.5 Year | 3.00 |
|
|
|
| 3 Year | 3.50 |
|
|
|
| 3.5 Year | 4.00 |
|
|
|
| 4 Year | 4.50 |
|
|
|
| 4.5 Year | 5.00 |
|
|
|
| 5 Year | ????? |
|
|
|
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Foundations of Financial Management
Authors: Stanley Block, Geoffrey Hirt, Bartley Danielsen
15th edition
77861612, 1259194078, 978-0077861612, 978-1259194078
