Investment Banking Corporation (IBC) owns 540 five-year T-Notes at par 10,000 at 8% semiannual coupons converted into STRIPS by requesting to split coupons and face value into separate securities registered with the Norwegian Financial Security Registry (VPS). Upon approval, IBC plans to sell 11 securities per bond, ten for each of the NOK 400 semi-annual coupons and one paying the 10,000 of face value at T = 5. Assume that on each of the STRIP components of the five year T-Note, the yield-to-maturity drops to 7.50%. 1 Calculate the present value (PV) of the whole package of strips.