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Suppose the current, zero-coupon, yield curve for risk-free bonds is as follows: Maturity (years) 1 2. 3 4 5 Yield to Maturity 4.38% 4.86% 5.25%

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Suppose the current, zero-coupon, yield curve for risk-free bonds is as follows: Maturity (years) 1 2. 3 4 5 Yield to Maturity 4.38% 4.86% 5.25% 5.58% 5.96% 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 4-year, zero-coupon, risk-free bond? c. What is the risk-free interest rate for a 2-year maturity? Note: Assume annual compounding. a. What is the price per $100 face value of a 3-year, zero-coupon risk-free bond? The price is $ (Round to the nearest cent.) b. What is the price per $100 face value of a 4-year, zero-coupon, risk-free bond? The price is $ (Round to the nearest cent.) c. What is the risk-free interest rate for a 2-year maturity? The risk-free rate is %. (Round to two decimal places.)

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