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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|----------------------|----------------------|------
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