Question: A $100,000 par value T-Note with 10 year to maturity and 4.175% coupon rate is converted into STRIPS by Bank of American and sold to

A $100,000 par value T-Note with 10 year to maturity and 4.175% coupon rate is converted into STRIPS by Bank of American and sold to investors for a yield of 3.825%. What is the price of each STRIP?

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Given Par value of the TNote 100000 Maturity period 10 years Coupon rate of the TNote 4175 Yield for the STRIPS 3825 1 Calculate Annual Coupon Payment ... View full answer

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