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You Buy a Principal STRIP Maturing in Five Years

Question 35

Multiple Choice

You buy a principal STRIP maturing in five years. The price quote per hundred of par for the STRIP is 75.75 percent. Using semiannual compounding,what is the promised yield to maturity on the STRIP?


A) 5.632 percent
B) 5.712 percent
C) 2.816 percent
D) 2.945 percent
E) 4.566 percent

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