A $1,000 Face Value STRIPS with 12 Years to Maturity

question 110

Multiple Choice

A $1,000 face value STRIPS with 12 years to maturity is quoted at 54.75. What is its yield to maturity?

• A) 5.08%
• B) 4.93%
• C) 5.86%
• D) 2.04%
• E) 3.09%

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Definitions:

Human Rights Violations

Acts which transgress against the basic human rights enshrined in international law, such as freedom of speech, right to live, and right to education.

American Foreign Policy

The strategic approach and actions taken by the United States in its relations with other nations, regarding diplomacy, military engagement, trade, etc.

Policy of Deterrence

A strategy aimed at dissuading an adversary from taking an unwelcome action by threatening negative consequences or retaliation.

Containment

A strategic policy aimed at preventing the expansion of an adversary's influence or ideology, often used in the context of the Cold War.