3. The following table summarizes prices of various default-free zero-coupon bonds (expressed as a percentage of face value Maturity (years) a) Compute the yield to maturity for each of the five zero-coupon bonds and as a percentage of 2 4 5 plot the zero-coupon yield curve (for the first five years). (15 %) b) Based on your answer in a), compute, under the pure expectations theory, the two-year forward rate three years from now. (3 %) c) Explain each of the following theories for the term structure of interest rates and discuss how each one of them could explain an upward slope of the yield curve. (1) Pure expectations (unbiased) (2) Liquidity preference (term premium) (3) Market segmentation