Q6 MFIN 202

The following table shows the prices of a sample of Treasury bonds, all of which have coupon rates of zero. Each bond makes a single payment at maturity.

Years to Maturity	Price (% of face value)
1	97.652%
2	94.151
3	90.344
4	86.280

a. What is the 1-year interest rate?

Note: Do not round intermediate calculations. Enter your answer as a percent rounded to 2 decimal places.

b. What is the 2-year interest rate?

Note: Do not round intermediate calculations. Enter your answer as a percent rounded to 2 decimal places.

c. What is the 3-year interest rate?

Note: Do not round intermediate calculations. Enter your answer as a percent rounded to 2 decimal places.

d. What is the 4-year interest rate?

Note: Do not round intermediate calculations. Enter your answer as a percent rounded to 2 decimal places.

e. Is the yield curve upward-sloping, downward-sloping, or flat?

f. Is this the usual shape of the yield curve?

pls indicate the parts