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Q5 You own a principal STRIPS that is based on a 4.5% coupon Treasury bond that matures in 20 years. The STRIPS is priced at

You own a principal STRIPS that is based on a 4.5% coupon Treasury bond that matures in 20 years. The STRIPS is priced at $22,868 and has a par value of $50,000. What is the yield to maturity on the STRIPS?

Multiple Choice

3.95%
3.99%
3.79%
3.93%
3.90%

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