What Is the Dollar Price of a $100 Face Value

question 1

Multiple Choice

What is the dollar price of a $100 face value STRIPS with six years to maturity, and a yield-to-maturity of 8.4 percent?

• A) $62.25
• B) $63.12
• C) $61.04
• D) $65.32
• E) $64.18

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Definitions:

Marginal Revenue Product

The additional revenue generated by employing one more unit of a factor, such as labor or capital.

Wage Rate

The amount of money paid to an employee per unit of time or output.

Total Product

The sum of all output produced by a company or an economy.

MRP Curve

A graphical representation showing the additional revenue generated by employing one more unit of a resource, also known as the Marginal Revenue Product curve.