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Another Example: Compute semi-annual compounded rate of return for a C-Strip if a 10-year C-STRIP is quoted at 58.770, the semi-annual compounded rate of return is given by 2[(

Question: I am not clear what the 100 in the formula represents? Please clarify the components in the formula. I see that 58.779 represents d(10).

**100**/58.779)^1/2-1]=5.385%.Question: I am not clear what the 100 in the formula represents? Please clarify the components in the formula. I see that 58.779 represents d(10).

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