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U.S. Treasury STRIPS. close of business February 15, 2019 Maturity Price Maturity Price Feb 2020 92.123 Fob 2023 98.666 Feb 2021 94.770 Feb 2024 87.528

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U.S. Treasury STRIPS. close of business February 15, 2019 Maturity Price Maturity Price Feb 2020 92.123 Fob 2023 98.666 Feb 2021 94.770 Feb 2024 87.528 Feb 2023 92.424 Feb 2025 85.610 a. Calculate the quoted yield for each of the STRIPS given in the table above. (Input all amounts as positive values. Do not round Intermediate calculations. Enter your answers as a percent rounded to 3 decimal places) STRIPS Feb 20 STRIP Feb 21 STRIP Feb 22 STRIP Feb 23 STRIP Feb 24 STRIP Feb 25 STRIP Quoted yield 2960 2.720 2.600 26501% 2.700 2000 b. Does the market expect interest rates to go up or down in the future? Down

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