Please answer Question #39 and show work.

A Treasury bill matures in 68 days and has a bond equivalent yield of 4.05 percent. What is the effective annual rate? A. 4.12 percent B. 4.14 percent C. 4.15 percent D. 4.17 percent E. 4.18 percent 39. A $20,000 face value STRIPS is currently quoted at 38.642 and has 8 years to maturity. What is the yield-to-maturity? A. 6.26 percent B. 6.30 percent C. 12.25 percent D. 12.65 percent E. 12.83 percent 40 What is the one year interest rate one year from now if the current one-year interest rate is 2.55 percent and the two-year interest rate is 3.15 percent? Assume the rates are effective annual rates. A. 3.62 percent B. 3.67 percent