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Suppose the current zero coupon yield curve for treasury bonds is as follows: Maturity (years) 1 2 3 4 5 YTM 3.25% 3.50% 3.90% 4.25%

Suppose the current zero coupon yield curve for treasury bonds is as follows:

Maturity (years) 1 2 3 4 5

YTM 3.25% 3.50% 3.90% 4.25% 4.40%

The price per $100 face value of a twoyear, zerocoupon bond is:

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