Q1). What is the price of a Treasury STRIPS with a face value of $100 that matures in 5 years and has a yield to maturity of 13.30 percent?

PRICE ? Not 53.65

Q2). Consider the following spot interest rates for maturities of one, two, three, and four years.

r1 = 5.2%

r2 = 5.6%

r3 = 6.3%

r4 = 7.1%

Assuming a constant real interest rate of 2 percent, what are the approximate expected inflation rates for the next four years?

I1.		%
I2		%
I3		%
I4		%