Question

Please estimate the 5-year interest if the profit of the treasury STRIPS is $80. Treasury STRIPS...

Please estimate the 5-year interest if the profit of the treasury STRIPS is $80. Treasury STRIPS are based on a 5-year treasury with coupon rate of 6% and par value of $1,000. The coupon payment is made semiannually.

Maturity Yield (%)
6 Month 1
1 year 1.5
1.5 Year 2
2 Year 2.5
2.5 Year 3
3 Year 3.5
3.5 Year 4
4 Year 4.5
4.5 Year 5
5 Year ?

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