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4.b) option b is the other picture 4. The following table surmmarizes prices of various default-free zero-coupen bends (expressed as a percentage of the face

4.b) option b is the other picture
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4. The following table surmmarizes prices of various default-free zero-coupen bends (expressed as a percentage of the face value) 1 . a. Compute the yeld to maturity for each bond. b. Plot the zero-coupon yleld curve (for the first five yoart). c. Is the yield curve upward sloping, dowtwward sloping, or flat? a. Compute the yield to maturity for each bond The yield on the 1.yeat bond is (Round to two decimal piaces) The yield on the 2-year bond is (Round to fwo decimal places.). The yield on the 3year bond is y. (Round to two decimal placea.) The yield on the 4 -year bond is 4. (Round to two decimat places.) The yield on the 5 -year bond is o. (Round to two decimat places.) b. Plot the zero-coupon yield curve (for the first five yeare). The following graph is the zero-coupon yield curve: (Select the bett choice below) A. c. Is the yield curve upward sloping, downward sioping. or flat? (Select from the drop-down menu.) The yield curve is (1) 1: Data Table (Click on the following icon in order to copy its contents into a spreadsheet.) PN (1) downward sioping. flat. upward sloping. B

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