Question 1. Calculate the value of a 10-year Treasury STRIP if the Treasury 10-year spot rate is 6-1/8%.
Question 2. Calculate the value of the Treasury STRIP in Problem #1 five years from now with the following expected Treasury spot rate curve:
6-month 6-7/8%
2-year 7-1/8%
5-year 7-3/8%
10-year 7-3/4%