Homework Answers
Price of Strip = Maturity Value * PVF(r%,n)
PVF(r%, n) = 1 / (1+r)^n
Price of Strip = Maturity Value * PVF(r%,n)
= $ 100 * PVF(6.5%, 12)
= $ 100 * 0.4697
= $ 46.97
Price of Treasury Strip is $ 46.97
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URGENT!!
The following table shows the prices of a sample of Treasury strips. Each strip makes a single payment at maturity. Years to Maturity Price, % of face value) 98.152% 94.651 90.844 86.780 a. What is the 1-year interest rate? (Do not round intermediate calculations. Enter your answer as a percent rounded to 2 decimal places.) b. What is the 2-year interest rate? (Do not round intermediate calculations. Enter your answer as a percent rounded to 2 decimal places.) c....
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a. Several years ago, Castles in the Sand Inc. issued bonds at face value of $1,000...
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A Treasury STRIPS matures in 5 years and has a yield to maturity of 6.4 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.) Price b. What is the quoted price? (Do not round intermediate calculations. Round your answer to 3 decimal places.) Quoted Price
A Treasury STRIPS matures in 8 years and has a yield to maturity of 5.4 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.) Answer is complete and correct. $ 65,293.94 Price b. What is the quoted price? (Do not round intermediate calculations. Round your answer to 3 decimal places.) Answer is complete but not entirely correct. Quoted Price 65,206.940
URGENT!!
The following table shows the prices of a sample of Treasury strips. Each strip makes a single payment at maturity. Years to Maturity Price, % of face value) 98.152% 94.651 90.844 86.780 a. What is the 1-year interest rate? (Do not round intermediate calculations. Enter your answer as a percent rounded to 2 decimal places.) b. What is the 2-year interest rate? (Do not round intermediate calculations. Enter your answer as a percent rounded to 2 decimal places.) c....
The following table shows the prices of a sample of Treasury strips. Each strip makes a single payment at maturity. Years to Maturity Price, (% of face value) 98.552% 95.051 91.244 87.180 a. What is the 1-year interest rate? (Do not round intermediate calculations. Enter your answer as a percent rounded to 2 decimal places.) b. What is the 2-year interest rate? (Do not round intermediate calculations. Enter your answer as a percent rounded to 2 decimal places.) c. What...
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