In a given year the log yield on a one-year zero-coupon bond, y1t , is 5%, the log yield on a two-year zero-coupon bond, y2t , is 6%, and the price of a 6%-coupon 3-year bond is 0.97. What is the log-yield of the three-year zero-coupon bond? Is the term structure of interest rates (up to three years maturity) standard or inverted? What is the shape of the term structure if the 6%-coupon 3-year bond sells at par?