4. The following table summarizes prices of various default-free zero-coupon bonds (expressed as a percentage of face value): 2 5 Maturity (years) 1 Price (per $100 face value) $95.51 $91.05 $86.38 $81.65 $76.51

a. Compute the yield to maturity for each bond.

b. Plot the zero-coupon yield curve (for the first five years).

c. Is the yield curve upward sloping, downward sloping, or flat? Use the following information for Problems 5-7. The current zero-coupon yield curve for risk-free bonds is as follows: Maturity (years) 1 2 3 4 5 YTM 8.23% 8.50% 8.67% 8.95% 9.05%