2 The following table summarizes prices of various default.freezero-coupon bonds (expressed as a percentage of the face value) Maturity (years) 3 4 Price (per $100 face value) S96.78 S9247 $87 80 $8303 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? 5 57795 c a. Compute the yield to maturity for each bond The yield on the 1-year bond is % (Round to two decimal places), The yield on the 2-year bond is % (Round to two decimal places) The yield on the 3-year bond is % (Round to two deemal places) The yield on the 4-year bond is 0% (Round to two decimal places) The yield on the 5-year bond is % (Round to two decimal places) b. Plot the zero-coupon yield curve (for the first five years) The following graph is the zero-coupon yield curve: (Select the best choice below) The following graph is the zero-coupon yield curve (Select the best choice below) OA . YIELD CURVE YIELD CURVE 70 70 65 GO 60 Q 50 55 53 5.0 50 Yield to Maturity (50 45 Yield to Maturity (%) 45 9 40 2 404 35 35 30 30 25 25 20 20- 1 Maturity (years) Maturity (years) m c. Is the yield curve upward sloping, downward sloping, or flat? (Select from the drop-down menu) The yield curve is