Below are yields of risk-free zero-coupon $1,000-par-value bonds of various maturities.

Maturity (years)	1	2	3	4	5
YTM	3.25%	3.50%	3.9%	4.25%

1. Fill in the blank if market price of the five-year zero-coupon bond is 809.79.
2. Construct yield curve using values from the table.
3. Suppose you would like to finance a project with equity. The project is expected to deliver cash flows during the next 3 years. Which of the risk-free rates from the table above you would use to estimate projects cost of capital? Explain your choice.