Question: Use the following information for Problems 36 through 39; assume today is Nov 15, 2019. Maturity Nov20 Nov21 Nov22 Nov23 Nov24 Nov25 STRIPS Price $953.13
Use the following information for Problems 36 through 39; assume today is Nov 15, 2019.
| Maturity | Nov20 | Nov21 | Nov22 | Nov23 | Nov24 | Nov25 |
| STRIPS Price | $953.13 | $901.56 | $849.06 | $790.94 | $742.19 | $695.00 |
According to the pure expectations theory of the term structure, what does the market believe the 3-year maturity spot yield will be on Nov 15, 2022?
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