What is the price of the strips

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A Treasury STRIPS matures in 7 years and has a yield to maturity of 4.4 percent. Assume the par value is $100,000.

(a) What is the price of the STRIPS?

(b) What is the quoted price? STRIPS prices are quoted as a percentage of par.

LKD Co. has 12 percent coupon bonds with a YTM of 9.9 percent. The current yield on these bonds is 10.4 percent. How many years do these bonds have left until they mature?

Reference no: EM132404514

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