Question
The following table shows the prices of a sample of Treasury strips. Each strip makes a single payment at maturity. Years to Maturity Price, (%
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 | 97.752 | % |
| 2 | 94.251 | |
| 3 | 90.444 | |
| 4 | 86.380 | |
a. What is the 1-year interest rate?
b. What is the 2-year interest rate?
c. What is the 3-year interest rate? d. What is the 4-year interest rate?
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Brilliant Book Keeping How To Keep Your Business Efficient And Cost Effective
Authors: Martin Quinn
1st Edition
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