W98NOONMT.8

8. Use the following STRIP table to find the price of a 2 year 8% coupon, $1000 par bond with semi-annual coupon payments. The next coupon is due on July 15, 1998. (6 pts.)

  Bid Asked Ask Yield
July 98 98:18 98:19 5.80
Jan 99 94:07 94:08 6.00
July 99 90:04 90:06 6.10
Jan 00 88:15 88:17 6.18

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