Maturity (years) 1 2 3 4 5

Price $97.25 $94.53 $91.83 $89.23 $87.53

The above table shows the price per $100 face value of several risk-free, zero-coupon bonds. What is the yield to maturity of the

four-year,

zero-coupon, risk-free bond shown?

A.

1.44%

B.

2.89%

C.

5.78%

D.

0.11%