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 97.552%

2 94.051

3 90.244

4 86.180

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

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

c.What is the 3-year interest rate?(Do not round intermediate calculations. Enter your answer as a percent rounded to 2 decimal places.)

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

e.Is the yield curve upward-sloping, downward-sloping, or flat?

f.Is this the usual shape of the yield curve?

a.Interest rate

b.Interest rate

c.Interest rate

d.Interest rate

e.Is the yield curve upward-sloping, downward-sloping, or flat?

f.Is this the usual shape of the yield curve?