Strip makes a single payment of maturity

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The following table shows the prices of sample of Treasury strips. Each strip makes a single payment of maturity.

Years to Maturity Price, (% of face value)

1 98.552%

2 95.051

3 91.244

4 87.180

a. What is the 1 -year interest rate? Round 2 Decimal places

b. What is the 2-year interest rate? Round 2 decimal places

c. What is the 3- year interest rate? Round 2 decimal places

d. What is they 4- year interest rate? Round 2 decimal places

Reference no: EM132370545

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