The yield to maturity for a 5.00 year STRIPS is 3.29%. If par value is $1,000....

Question

Question

The yield to maturity for a 5.00 year STRIPS is 3.29%. If par value is $1,000. then it should sell for $_______.

The market price of a 13.00-year STRIPS is $369.00 The yield to maturity is ____%.

Answer 1

Answer #1

S1,000 1 Face value Term 5 Years YTM = 3.29% = Face value / (1 +YTM)^n = S1,000 (1 3.29% ^5 = $1,000 1.175686109 Current sale

Answer 2

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