#3

The following table summarizes prices of various default-free zero-coupon bonds (\$100 face value): a. Compute the yield to maturify for each bond. The yield on the 1-year bond is 15. (Round to two decimal places.) Tho yeld on the 2-year bond is 4. (Round to two decimal places.) The yeld on the 3-year bond is \%. (Round to two decimal places.) The yieid on the 4-year bond is 2. (Round to two decimal places.) The yieid on the 5-year bond is \%. (Round to fwo decimal places.) b. Plot the zero-coupon yleld curve (for the first five years). (Select the best choice befow.) The following table summarizes perces of various default-free zero-coupon bonds (\$100 face valuek b. Plot the zero-coupon yield curve (for the first five years). (Select the best cholce bolow.) A. B. (t) Time Remaining: 01:57:02 c. Is the yield curve upward sloping, downward sloping, or flat? It is sloping. (Select from the drop-down menu.)