You buy a principal STRIP maturing in 5 years. The price quote per hundred of par for the strip is 75.75%. Using semiannual compounding what is the promised yield to maturity on the STRIP?
A) 5.632%
B) 5.712%
C) 2.816%
D) 2.945%
E) 4.566% [(100/75.75) (1/(5x2) ) - 1] x 2 = 5.632%
Correct Answer:
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