Question: A $1000 face value strip bond has 19 years remaining until maturity. What is its price if the market rate of return on such bonds

A $1000 face value strip bond has 19 years remaining until maturity. What is its price if the market rate of return on such bonds is 5.9% compounded semiannually? At this market rate of return, what will be the increase in the value of the strip bond during the fifth year of ownership?

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