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	98.052%
2	94.551
3	90.744
4	86.680

a. What is the 1-year interest rate? (Do not round intermediate calculations. Enter your answer as a percent rounded to 2 decimal places.) Interest rate %

b. What is the 4-year rate? (Do not round intermediate calculations. Enter your answer as a percent rounded to 2 decimal places.) Interest rate %

c. Is the yield curve upward-sloping, downward-sloping, or flat? Upward-sloping Downward-sloping Flat d. Is this the usual shape of the yield curve? Yes No