A STRIPS Has a Yield to Maturity of 7

question 59

Multiple Choice

A STRIPS has a yield to maturity of 7.2 percent, a par value of $25,000, and a time to maturity of 12 years. What is the price?

• A) $4,100.87
• B) $5,792.80
• C) $9,967.50
• D) $10,698.08
• E) $15,785.68

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Definitions:

Monomer Units

Small molecules that can be bonded together to form polymers.

Cationic Polymerization

A type of polymerization where a cationic initiator transfers charge to a monomer causing it to become reactive and link to other monomers.

Poly(acrylonitrile)

A synthetic polymer made by polymerizing acrylonitrile, used in the production of fibers, plastics, and rubbers due to its strength and thermal stability.

Poly (vinyl Acetate)

A polymer made by polymerizing vinyl acetate, used in adhesives, paints, and various coatings.