322.1
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 |
||
| August 2019 | 96.01 |
96.02 |
||
| February 2020 | 92.22 |
92.25 |
||
| August 2020 | 88.13 |
88.16 |
||
| February 2021 | 84.65 |
84.75 |
||
Cash flows:
Today |
February 2020 |
February 2021 |
||
-$10,000 |
+$70,000 |
+$10,000 |
||