Question: 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

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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