U.S. Treasury STRIPS, close of business November 15, 2015: Maturity Price November 2016 99.471 November 2017 98.782 November 2018 96.827 0.531% 0.614% 1.077% 1.2772% Maturity November 2019 November 2020 November 2021 Question 5 (0.2 points) Choose one closest to the quoted yield (APR) for Nov16 STRIP. 1.5501% Price 95.035 92.57 89.342

Choose one closest to the quoted yield (APR) for Nov17 STRIP. 0.531%0.614%1.077%1.277%1.550% Question 7 ( 0.2 points) Choose one closest to the yield of the Nov18 STRIP expressed as an EAR. 1.3682% 1.7655% 2.1342% 2.6775% Choose one closest to one-year forward rate. 40 basis points 50 basis points 60 basis points 70 basis points 80 basis points Question 9 ( 0.2 points) Choose one closest to what you pay for Nov17 STRIP in Nov 2016. (Hint: Discount the par (100) one year at the forward rate you calculated above.) 97.6 98.1 98.6 99.3 99.9