Q3 Q3

The following table summarizes prices of various default-free zero-coupon bonds ( $100 face value): (Click on the following icon in order to copy its contents into a spreadsheet.) a. Compute the yield to maturity for each bond. b. Plot the zero-coupon yield curve (for the first five years). c. Is the yield curve upward sloping, downward sloping, or flat? Note: Assume annual compounding. a. Compute the yield to maturity for each bond. The yield on the 1-year bond is The yield on the 2-year bond is The yield on the 3-year bond is The yield on the 4-year bond is The yield on the 5-year bond is \%. (Round to two decimal places.) \%. (Round to two decimal places.) \%. (Round to two decimal places.) \%. (Round to two decimal places.) \%. (Round to two decimal places.)