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	98.552%
2	95.051
3	91.244
4	87.180

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

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