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Consider a $5000 Face Value Province of Ontario Strip Bond

Question 79

Short Answer

Consider a $5000 face value Province of Ontario strip bond from the issue in Table 8.3 that matures on
December 1, 2018. If the yield does not change as years go by, what will be the bond's value on:
a) December 1, 2012?
b) December 1, 2014?
c) December 1, 2016?

Correct Answer:

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a) $3809.5...

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