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Pricing STRIPS and the Term Structure

Harris, Robert S.

Case

Pricing STRIPS and the Term Structure

Harris, Robert S.

F-0925 | Published March 29, 1990 | 5 pages. Case

Collection: Darden School of Business

Product Details

Using the data on coupon bonds provided in the note, students are asked to estimate the value of portions of the bond (stripping coupons and principal) and deal with the fact that the term structure of interest rates is not flat. There is also discussion on the general nature of stripping bonds.

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