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Problem 6-30 Yield Curve (L04) The following table shows the prices of a sample of Treasury strips. Each strip makes a single payment at maturity.

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Problem 6-30 Yield Curve (L04) The following table shows the prices of a sample of Treasury strips. Each strip makes a single payment at maturity. Years to Price, (of face Maturity value) 1 2 3 4 96.952 93.451 89.644 85.580 a. What is the 1-year interest rate? (Do not round intermediate calculations. Enter your answer as a percent rounded to 2 decimal places.) b. What is the 2-year Interest rate? (Do not round intermediate calculations. Enter your answer as a percent rounded to 2 decimal places.) c. What is the 3-year Interest rate? (Do not round intermediate calculations. Enter your answer as a percent rounded to 2 decimal places.) d. What is the 4-year interest rate? (Do not round intermediate calculations. Enter your answer as a percent rounded to 2 decimal places.) e. Is the yield curve upward-sloping, downward-sloping, or flat? f. Is this the usual shape of the yield curve? Interest rate b. Interest rate cinterest rate d. Interest rate e. Is the yield curve upward-sloping, downward-sloping, or flat? 1 Is this the usual shape of the yield curve

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