A STRIPS Has a $9,000 Par Value and a Market

question 80

Multiple Choice

A STRIPS has a $9,000 par value and a market value of $7,050.The time to maturity is 5 years.What is the yield to maturity?

• A) 2.07 percent
• B) 3.00 percent
• C) 4.94 percent
• D) 5.00 percent
• E) 5.07 percent