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U.S. Treasury STRIPS, close of business November 15, 2015: Maturity Price Maturity Price November 16 99.471 November 19 95.035 November 17 98.782 November 20 92.570

U.S. Treasury STRIPS, close of business November 15, 2015:

Maturity Price Maturity Price
November 16 99.471 November 19 95.035
November 17 98.782 November 20 92.570
November 18 96.827 November 21 89.342

a-1. Suppose the (quoted) yield on each of the six STRIPS increases by 0.05 percent. Calculate the percentage change in price for the one-year, three-year, and six-year STRIPS. (A negative value should be indicated by a minus sign. Do not round intermediate calculations. Enter your answers as a percent rounded to 3 decimal places.)

a-2. Which one has the largest price change?

b-1. Suppose the quoted price on each STRIPS decreases by 0.500. Calculate the percentage change in (quoted) yield for the one-year, three-year, and six-year STRIPS. (Input all amounts as positive values. Do not round intermediate calculations. Enter your answers as a percent rounded to 2 decimal places.)

b-2. Which one has the largest yield change?

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