Assuming that this bond trades for $1112, then the YTM for this bond is closest to: 8.0% 3.4% 6.8% 9.2% Question 5 The following table summarizes prices of various default-free zero-coupon bonds (expressed as a percentage of face value): The yield to maturity for the two-year zero-coupon bond is closest to: 6.0% 5.8% 5.6% 5.5% Question 6 The following table summarizes prices of various default-free zero-coupon bonds (expressed as a percentage of face value): Based upon the information provided in the table above, you can conclude that the yield curve is flat. nothing about the shape of the yield curve. that the yield curve is downward sloping. that the yield curve is upward sloping. Question 7 Consider a zero-coupon bond with 20 years to maturity. The amount that the price of the bond will change if its yield to maturity decreases from 7% to 5% is closest to: $118. $53. $53. $673