You own a principal STRIPS that is based on a 4.5% coupon Treasury bond that matures in 20 years. The STRIPS is priced at $22,868 and has a par value of $50,000. What is the yield to maturity on the STRIPS?
A) 3.79%
B) 3.90%
C) 3.93%
D) 3.95%
E) 3.99%
Correct Answer:
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