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A $20,000 Face Value STRIPS Is Currently Quoted at 38

Question 61

Multiple Choice

A $20,000 face value STRIPS is currently quoted at 38.642 and has 8 years to maturity.What is the yield-to-maturity?

A) 6.26 percent
B) 6.30 percent
C) 12.25 percent
D) 12.65 percent
E) 12.83 percent

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