Question: You decided to convert a 5-year Treasury into a set of stripped securities below on October 15, 2019. Calculate the total present value of these

You decided to convert a 5-year Treasury into a set of stripped securities below on October 15, 2019. Calculate the total present value of these securities based on the prices in the stripped interest and stripped principal markets. Would you profit from stripping this Treasury Note? Assume that the original Treasury has a face value of $1,000,000.

U.S. Treasury (hypothetical Data) at as 15 Oct 2019

	COUPON (%)	PRICE	YIELD CHG
10-Year Note	1.625	99.415	0.000
7-Year Note	1.425	98.012	0.000
10/15/2024	1.235	97.742	0.000
10/15/2022	1.175	97.451	0.000
10/15/2021	1.05	97.345	0.000
10/15/2020	0	96.972	0.000
04/15/2020	0	96.878	0.000
01/15/2020	0	96.241	0.000
11/15/2019	0	95.873	0.000

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