A $20,000 Face Value STRIPS Is Currently Quoted at 38

question 61

Multiple Choice

A $20,000 face value STRIPS is currently quoted at 38.642 and has 8 years to maturity.What is the yield-to-maturity?

• A) 6.26 percent
• B) 6.30 percent
• C) 12.25 percent
• D) 12.65 percent
• E) 12.83 percent

---

Definitions:

Empirical Reasoning

A method of thought that involves making conclusions based on observed and verified evidence.

Ideological Reasoning

The process of thinking that is heavily influenced by a predetermined set of beliefs or ideology.

Economic Growth

An increase in the production of goods and services over a specific period, often measured by GDP.

Ideological Reasoning

Reasoning guided by a set of beliefs or a specific ideology rather than empirical evidence or logical analysis.