Suppose you have a chance to buy a Treasury strip.The strip is from a government bond with a 6% coupon rate (face value of $1,000) .You will receive this strip in one year and have a discount rate of 10%.What is the price you are willing to pay for this strip?
A) $36.87
B) $54.55
C) $60.00
D) $94.34
Correct Answer:
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