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)

1

97.418

%

2

94.259

3

90.851

4

86.976

a. calculate the annually compounded spot interest rate for each year

b. What is the 2-year spot interest rate will be ? (Do not round intermediate calculations. Enter your answer as a percent rounded to 2 decimal places.)