A STRIPS Matures in 6 Years,has a Face Value of $17,000,and

question 91

Multiple Choice

A STRIPS matures in 6 years,has a face value of $17,000,and has a yield to maturity of 4.8 percent.What is the price?

• A)$10,854.59
• B)$11,010.43
• C)$11,284.75
• D)$11,322.01
• E)$12,789.38

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Definitions:

Capital Expenditure Budget

A budget for planning and controlling spending on long-term assets, including buildings, equipment, and technology, intended for future operations.

Long-Term Assets

Assets that are expected to provide economic benefits over a period longer than one year, such as buildings and equipment.

Strategic Plan

A document that outlines an organization's long-term goals and the actions needed to achieve them, often focusing on overall organizational growth and success.

Short-Term Plan

A strategy or agenda set for a brief period, typically less than a year, focusing on immediate goals and objectives.