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3 5 5.20% 5.48% Suppose the current, zero-coupon, yield curve for risk-free bonds is as follows: Maturity (years) 1 2 Yield to Maturity 4.37% 4.78%

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3 5 5.20% 5.48% Suppose the current, zero-coupon, yield curve for risk-free bonds is as follows: Maturity (years) 1 2 Yield to Maturity 4.37% 4.78% 4.96% a. What is the price per $100 face value of a 3-year, zero-coupon risk-free bond? b. What is the price per $100 face value of a 5-year, zero-coupon, risk-free bond? c. What is the risk-free interest rate for a 3-year maturity? Note: Assume annual compounding. a. What is the price per $100 face value of a 3-year, zero-coupon risk-free bond? The price is $. (Round to the nearest cent.) b. What is the price per $100 face value of a 5-year, zero-coupon, risk-free bond? The price is $]. (Round to the nearest cent.) c. What is the risk-free interest rate for a 3-year maturity? The risk-free rate is %. (Round to two decimal places.)

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