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The following table shows the prices of a sample of Treasury strips. Each strip makes a single payment at maturity. Calculate the interest rate offered
The following table shows the prices of a sample of Treasury strips. Each strip makes a single payment at maturity. Calculate the interest rate offered by each of these strips. |
Years to Maturity | Price, % |
1 | 98.152% |
2 | 94.651 |
3 | 90.844 |
4 | 86.780 |
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