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Question text You own a principal STRIPS which is based on a 4.5 percent coupon Treasury bond that matures in 20 years. The STRIPS is
Question text You own a principal STRIPS which is based on a 4.5 percent 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? Select one: a. 3.79 percent b. 3.90 percent c. 3.93 percent d. 3.95 percent e. 3.99 percent.
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