Choose one closest to the yield of the Nov18 STRIP expressed as an EAR. 1.3682% 1.7655% 2.1342% 2.6775% 3.1422% Question 4 (0.3 points) Choose one closest to one-year forward rate. 40 basis points 50 basis points 60 basis points 70 basis points 80 basis points Question 5 (0.3 points) Choose one closest to what you pay for Nov17 STRIP in Nov 2016. (Hint: Discount the par (100) one year at the forward rate you calculated above.) 0976 98.1 98.6 99.3 US Treasury STRIPS and PET. U.S. Treasury STRIPS, close of business November 15, 2015: Maturity Price Maturity Price November '16 99.471 November '19 95.035 November '17 98.782 November '20 92.570 November '18 96.827 November '21 89.342