W00Q2.1

1.Use this STRIP table to price a 7% coupon bond with semi-annual coupons and one and a half years to maturity. The next coupon is due in August 2000 and it is now Feb 2000. (2 pts)

  1. STRIP

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    May 2000

    98:12

    Aug 2000

    96:30

    Feb 2001

    93:24

    May 2001

    92:04

    Aug 2001

    90:16

    Feb 2002

    87:20

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