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Use the following Treasury STRIPS quote to answer the following questions. U.S. Treasury STRIPS Quote (as of August 15, 2010) Maturity Bid Asked Chg Asked

Use the following Treasury STRIPS quote to answer the following questions.

U.S. Treasury STRIPS Quote (as of August 15, 2010)

Maturity

Bid

Asked

Chg

Asked yield

8/15/2015

93.102

93.112

0.142

1.46

2. Complete a time line for an investor planning to buy the above STRIPS with $1,000 of par value. Your time line should identify the financial calculator variables (N, I/Y, PV, PMT, FV).

0 1 2

|----------------------|----------------------|------

3. Complete a time line for a dealer planning to buy the above STRIPS with $1,000 of par value. Your time line should identify the financial calculator variables (N, I/Y, PV, PMT, FV).

0 1 2

|----------------------|----------------------|------

Thanks!

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