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Show your calculation steps please. The following table shows the prices of a sample of Treasury strips. Each strip makes a single payment at maturity
Show your calculation steps please.
The following table shows the prices of a sample of Treasury strips. Each strip makes a single payment at maturity Years to Maturity Price, (% of face value) 98.752% 95.251 91.444 87.380 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.)Step by Step Solution
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