What is the price of a Treasury STRIPS with a face value of $100 that matures in
ID: 2764793 • Letter: W
Question
What is the price of a Treasury STRIPS with a face value of $100 that matures in 11 years and has a yield to maturity of 6.0 percent? (Do not round intermediate calculations. Round your answer to 2 decimal places. Omit the "$" sign in your response.)
Price: $
What is the price of a Treasury STRIPS with a face value of $100 that matures in 11 years and has a yield to maturity of 6.0 percent? (Do not round intermediate calculations. Round your answer to 2 decimal places. Omit the "$" sign in your response.)
Explanation / Answer
price of a Treasury STRIPS 526.79 Statemnet showing Price or Intrinsic Value Particulars Time PVf @6% Amount PV Cash Flows (Income) 1.00 0.9434 - - Cash Flows (Income) 2.00 0.8900 - - Cash Flows (Income) 3.00 0.8396 - - Cash Flows (Income) 4.00 0.7921 - - Cash Flows (Income) 5.00 0.7473 - - Cash Flows (Income) 6.00 0.7050 - - Cash Flows (Income) 7.00 0.6651 - - Cash Flows (Income) 8.00 0.6274 - - Cash Flows (Income) 9.00 0.5919 - - Cash Flows (Income) 10.00 0.5584 - - Cash Flows (Income) 11.00 0.5268 - - Cash flows (Maturity Amount) 11.00 0.5268 1,000.00 526.79 price of a Treasury STRIPS 526.79 Time PVF@6% 1 0.9434 2 0.8900 3 0.8396 4 0.7921 5 0.7473 6 0.7050 7 0.6651 8 0.6274 9 0.5919 10 0.5584 11 0.5268
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