A $10,000 Face Value STRIPS Is Currently Quoted at 38

question 78

Multiple Choice

A $10,000 face value STRIPS is currently quoted at 38.642 and has 11 years to maturity. What is the yield-to-maturity?

• A) 4.26 percent
• B) 4.30 percent
• C) 8.48 percent
• D) 8.65 percent
• E) 8.83 percent

---

Definitions:

Unconditioned Stimulus

is a stimulus that innately and involuntarily prompts a reaction without the necessity for previous learning.

Conditioned Stimulus

In classical conditioning, a previously neutral stimulus that, after association with an unconditioned stimulus, comes to trigger a conditioned response.

Conditioned Response

A learned response to a previously neutral stimulus that has been repeatedly presented along with an unconditioned stimulus.

Conditioned Stimulus

A once-neutral cue that, after being paired with an unconditioned stimulus, eventually induces a conditioned response.