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Question
You own a principal STRIPS which is based on a 4.5 percent coupon Treasury bond that matures in 20 years. The STRIPS is priced at $22,868 and has a par value of $50,000. What is the yield to maturity on the STRIPS?A. 3.79 percent
B. 3.90 percent
C. 3.93 percent
D. 3.95 percent
E. 3.99 percent
Answer
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