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U.S. Treasury STRIPS, close of business November 15, 2015: Price November '16 99.471 Price 95.035 November 17 98.782 November '2092.570 Maturity November 19 Maturity November

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U.S. Treasury STRIPS, close of business November 15, 2015: Price November '16 99.471 Price 95.035 November 17 98.782 November '2092.570 Maturity November 19 Maturity November '18 96.827 November '21 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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