A STRIPS Has a $10,000 Par Value and a Market

question 59

Multiple Choice

A STRIPS has a $10,000 par value and a market value of $8,590. The time to maturity is 7 years. What is the yield to maturity?

• A)2.18%
• B)3.00%
• C)4.94%
• D)5.10%
• E)5.27%

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