Treasury strips-what is the yield to maturity

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Reference no: EM132018497

1. A Treasury STRIPS is quoted at 54.789 and has 8 years until maturity. What is the yield to maturity? (Do not round intermediate calculations. Enter your answer as a percent rounded to 2 decimal places.)

2. A U.S. Treasury bill with 75 days to maturity is quoted at a discount yield of 1.25 percent. Assume a $1 million face value. What is the bond equivalent yield? (Do not round intermediate calculations. Enter your answer as a percent rounded to 3 decimal places.)

Reference no: EM132018497

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