Grapefruit Yeargin is considering purchasing a 10-year Treasury STRIP with a $10,000 par value. If the Treasury

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Grapefruit Yeargin is considering purchasing a 10-year Treasury STRIP with a $10,000 par value. If the Treasury yield curve indicates that 6% is the appropriate yield for such bonds, what is the fair market value of this bond? (Assume annual compounding.)
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Fundamentals of Investments

ISBN: 978-0132926171

3rd edition

Authors: Gordon J. Alexander, William F. Sharpe, Jeffery V. Bailey

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