A Treasury STRIPS matures in 7 years and has a yield to maturity of 9.4 percent. Assume the par value is $100,000. a. What is the price of the STRIPS? (Do not round intermediate calculations. Round your answer to 2 decimal places.) b. What is the quoted price? (Do not round intermediate calculations. Round your answer to 3 decimal places.)

A Treasury STRIPS matures in 7 years and has a yield to maturity of 9.4 percent. Assume the par value is $100,000. a. What is the price of the STRIPS? (Do not round intermediate calculations. Round your answer to 2 decimal places.) b. What is the quoted price? (Do not round intermediate calculations. Round your answer to 3 decimal places.)

EBK CONTEMPORARY FINANCIAL MANAGEMENT

14th Edition

ISBN:9781337514835

Author:MOYER

Publisher:MOYER

Chapter2: The Domestic And International Financial Marketplace

Section: Chapter Questions

Problem 4P

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