W99NOONQ2.1
Use the following STRIP table to figure the NPV a project that has these cash flows:
STRIP Table:
| Maturity of STRIP | Bid Price |
Ask Price |
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| August 1999 | 96:01 |
96:02 |
||
| February 2000 | 92:07 |
92:08 |
||
| August 2000 | 88:13 |
88:16 |
||
| February 2001 | 84:21 |
84:24 |
||
Cash flows:
Today |
February 2000 |
February 2001 |
||
-$10,000 |
+$70,000 |
+$10,000 |
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