Jim buys an 8 year $10,000 bond paying interest at j₂ = 6%.The bond is redeemable at 98.5.Jim strips off the coupons and sells the strip bond to Kim,who desires a yield of j₁₂ = 6%.What price does Kim pay for the bond? A)$6231.67 B)$6195.24 C)$6138.19 D)$6102.31

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The Answer of Jim buys an 8 year $10,000 bond paying interest at j₂ = 6%.The bond is redeemable at 98.5.Jim strips off the coupons and sells the strip bond to Kim,who desires a yield of j₁₂ = 6%.What price does Kim pay for the bond? A)$6231.67 B)$6195.24 C)$6138.19 D)$6102.31

Jim Buys an 8 Year $10,000 Bond Paying Interest at J2

Jim Buys an 8 Year $10,000 Bond Paying Interest at J₂