short-term bonds to offer Right 29. Yield Curve. The following table shows the prices of a sample of Treasury bonds, all of Page 189 which have coupon rates of zero. Each bond makes a single payment at maturity. ( 106-4) Years to Maturity 1 2 3 4 Price (% of face value) 96.852% a. What is the one-year interest rate? b. What is the two-year interest rate? c. What is the three-year interest rate? d. What is the four-year interest rate? e. Is the yield curve upward-sloping, downward-sloping, or flat? f. Is this the usual shape of the yield curve? 93.351 89.544 85.480