Consider a $10,000 face value Government of Canada strip bond from the issue in Table 8.3 that matures on June 1, 2025. Assume the yield does not change as years go by.
a) What will be the bond's value on December 1, 2016?
b) What will be the bond's value on December 1, 2020?
c) Suppose you invest an amount equal to the answer from Part (a) at 4.08% compounded semiannually for four years. What will its maturity value be?
d) To three-figure accuracy, why do you get the same answers for Parts (b) and (c)?

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The Answer of Consider a $10,000 face value Government of Canada strip bond from the issue in Table 8.3 that matures on June 1, 2025. Assume the yield does not change as years go by.
a) What will be the bond's value on December 1, 2016?
b) What will be the bond's value on December 1, 2020?
c) Suppose you invest an amount equal to the answer from Part (a) at 4.08% compounded semiannually for four years. What will its maturity value be?
d) To three-figure accuracy, why do you get the same answers for Parts (b) and (c)?

Consider a $10,000 Face Value Government of Canada Strip Bond