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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

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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.

1 2 3 4 5 Maturity (years) Yield to Maturity 4.54% 4.93% 5.04% 5.17% 5.32%

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