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:

Regression

A statistical method used to understand the relationship between a dependent variable and one or more independent variables.

Kilowatt-Hours

A unit of energy measurement equal to the power consumption of one thousand watts for one hour.

Square Feet

A unit of area measurement in the Imperial and US customary systems, used to measure the size of an area.

Selling Price

The final amount of money charged for a product or service, representing the cost to the buyer under conditions of sale.