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Question 17 5 points Mouna is a bond dealer. She buys at auction Treasury bonds of $1,000 face value, paying 4% semiannual coupons and with

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Question 17 5 points Mouna is a bond dealer. She buys at auction Treasury bonds of $1,000 face value, paying 4% semiannual coupons and with a tomto maturity of 30 years. She creato STRIPs from those Treasury securities to be issued to investors in the market A. Indicate the purpose for creating STRIPS. (1 mark) B. Briefly explain the process which Mouna will use to create these STRIPS. (2 marks) What will be the face value of each component of the STRIPS created from one Treasury bond. (2 marks) Question 17 5 points Mouna is a bond dealer. She buys at auction Treasury bonds of $1,000 face value, paying 4% semiannual coupons and with a tomto maturity of 30 years. She creato STRIPs from those Treasury securities to be issued to investors in the market A. Indicate the purpose for creating STRIPS. (1 mark) B. Briefly explain the process which Mouna will use to create these STRIPS. (2 marks) What will be the face value of each component of the STRIPS created from one Treasury bond. (2 marks)

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