In: Finance
The following table shows the prices of a sample of Treasury
strips. Each strip makes a single payment at maturity.
Years to Maturity | Price, (% of face value) | |
1 | 97.752 | % |
2 | 94.251 | |
3 | 90.444 | |
4 | 86.380 |
a. What is the 1-year interest rate?
b. What is the 2-year interest rate?
c. What is the 3-year interest rate?
d. What is the 4-year interest rate?