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U.S. Treasury STRIPS, close of business November 15, 2015: Price 95.035 November 17 98.782 November '20 92.570 November 18 96.827 November 21 89.342 Price November

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U.S. Treasury STRIPS, close of business November 15, 2015: Price 95.035 November 17 98.782 November '20 92.570 November 18 96.827 November 21 89.342 Price November 16 99.471 Maturity November '19 Maturity a. According to the pure expectations theory of interest rates, how much do you expect to pay for a five-year STRIPS on November 15, 2016? (Do not round intermediate calculations. Enter your answer as a percent rounded to 3 decimal places.) Price b. According to the pure expectations theory of interest rates, how much do you expect to pay for a two-year STRIPS on November 15, 2018? (Do not round intermediate calculations. Enter your answer as a percent rounded to 3 decimal places.) Price

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