Question: . Given the information below, please estimate the 5-year interest if the profit of the treasury STRIPS is $80. Treasury STRIPS: based on a 5-year

. Given the information below, please estimate the 5-year interest if the profit of the treasury STRIPS is $80.

Treasury STRIPS: based on a 5-year treasury with coupon rate of 6% and par value of $1,000. (The coupon payment is made semiannually.)

US Treasury Bonds

Maturity

Yield (%)

6 Month

1.00

1 year

1.50

1.5 Year

2.00

2 Year

2.50

2.5 Year

3.00

3 Year

3.50

3.5 Year

4.00

4 Year

4.50

4.5 Year

5.00

5 Year

?????

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