A STRIPS Has a Yield to Maturity of 6

question 101

Multiple Choice

A STRIPS has a yield to maturity of 6.2 percent,a par value of $25,000,and a time to maturity of 10 years.What is the price?

• A) $4,100.87
• B) $5,792.80
• C) $9,967.50
• D) $10,698.08
• E) $13,575.84

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Definitions:

Vertical Integrate

A strategy where a company expands its business operations into different steps on the same production path, such as when a manufacturer owns its supplier and/or distributor.

Free Riding Problem

A situation in which individuals benefit from resources, goods, or services without paying for them, leading to under-provision or depletion of those resources.

Discount Retailers

Stores or outlets that sell products at lower prices than those typically charged by traditional retail outlets.

Exclusive Territories

Areas or regions where a distributor or sales agent is given the sole rights to sell a company's product, preventing competition within that territory.