A $50,000 Face Value STRIPS Matures in 12 Years and Has

question 46

Multiple Choice

A $50,000 face value STRIPS matures in 12 years and has a yield to maturity of 6.50%. What is the current dollar price of this security?

• A)$21,199.68
• B)$23,206.44
• C)$25,038.18
• D)$26,141.41
• E)$28,809.18

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Definitions:

Rugae

Folds, such as those in the lining of the stomach.

Gastric Juices

are a mixture of mucus, hydrochloric acid, and digestive enzymes produced by the stomach lining to digest food.

Stomach

Muscular region of the vertebrate digestive tract, extending from the esophagus to the small intestine.

Suspension Feeders

Organisms that feed by filtering suspended matter and food particles from water, often found in aquatic environments.