Suppose the current, zero-coupon, yield curve for risk-free bonds is as follows:

Maturity (years)	1	2	3	4	5
Yield to Maturity	4.78%	5.26%	5.57%	5.74%	5.85%

a. What is the price per

$100

face value of a

3-year,

zero-coupon risk-free bond?

b. What is the price per

$100

face value of a

5-year,

zero-coupon, risk-free bond?

c. What is the risk-free interest rate for a

3-year

maturity?

Note:

Assume annual compounding.