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Maturity ( years ) 1 2 3 4 5 Price ( per $ 1 0 0 face value ) 9 5 . 4 2 9

Maturity (years)12345
Price (per $100 face value)95.4291.0386.4581.676.48
a. Compute the yield to maturity for each bond.
b. Plot thezero-coupon yield curve(for the first fiveyears).
c. Is the yield curve upwardsloping, downwardsloping, orflat?
Note:
Assume annual compounding.

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