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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 98.052% 2 94.551 3 90.744 4 86.680 (enter your answer as a percent rate rounded to 2 decimal places) 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? E. is the yield curve upward sloping, downward sloping or flat? F. is this the usual shape of the yield curve?

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