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You observe the following yields on zero coupon U.S. Treasury STRIPS. The settlement date is 11/15/2017. All yields are based on semiannual compounding. Maturity Date
You observe the following yields on zero coupon U.S. Treasury STRIPS. The settlement date is 11/15/2017. All yields are based on semiannual compounding.
Maturity Date Yield
5/15/2018 2.20%
11/15/2018 2.50%
5/15/2019 2.70%
11/15/2019 2.85%
5/15/2020 3.00%
11/15/2020 3.10%
(a) Calculate the STRIP prices that correspond to the yields above.
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