
Pricing STRIPS and the Term Structure
Harris, Robert S.
Case
Pricing STRIPS and the Term Structure
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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