Problem $4.$ Interest Rate Risk. You are given the following information about

the yields of Treasury STRIPS $($zero$-$coupon bonds that pay $$100$ at maturity$)$:

$y1=3\%,y2=4\%,y29=6\mathrm{.}1\%,$ and $y30=6\mathrm{.}0\%,$ where $yt$

is the yield$-$to$-$maturity on a t$-$year STRIP. Assume that all cash flows are riskless and we can borrow and

lend at the stated rates. You buy $50,00030-$year STRIPS and partially finance these by

issuing $5,0002-$year STRIPS $($i$.$e$.,$ you are borrowing money by promising to pay

$$500,000=5,000$$$100$ in two years