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 5-year maturity?

Note:

Assume annual compounding.

Suppose the current, zero-coupon, yield curve for risk-free bonds is as follows: 1 2 3 5 Maturity (years) Yield to Maturity 4.35% 4.76% 4.92% 5.29% 5.55%