W998AMQ2.1
1. Use the following STRIP table to figure the price of a 1 year 8% coupon bond with semi-annual payments. The next coupon is due in August 1999. (3 pts)
| Maturity of STRIP | Bid Price | Ask Price |
| August 1999 | 95:00 | 95:02 |
| February 2000 | 90:06 | 90:08 |
| August 2000 | 85:13 | 85:16 |
| February 2001 | 80:20 | 80:24 |