$10,000 face value strip bond has 15 years remaining until maturity. If the prevailing market rate of return is 6.5% compounded semiannually, what is the fair market value of the strip bond?

Q: $10,000 face value strip bond has 15 years remaining until maturity. If the prevailing market rate of return is 6.5% compounded semiannually, what is the fair market value of the strip bond?

i=j/m n =m(Term) = 2(15.5) =31 Fair market value Present value of the face value =FV(1+ i)^-n

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i=j/m n =m(Term) = 2(15.5)  =31 Fair market value  Present value of the face value  =FV(1+  i)^-n

$10,000 face value strip bond has 15 years remaining until maturity. If the prevailing market rate of return is 6.5% compounded semiannually, what is the fair market value of the strip bond?

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