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	97.652%
2	94.151
3	90.344
4	86.280

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