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Suppose the current, zero-coupon, yield curve for risk-free bonds is as follows: Maturity (years) 1 2 3 4 Yield to Maturity 4.88% 5.24% 5.36% 5.72%

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Suppose the current, zero-coupon, yield curve for risk-free bonds is as follows: Maturity (years) 1 2 3 4 Yield to Maturity 4.88% 5.24% 5.36% 5.72% 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. 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 5-year, zero-coupon, risk-free bond? (Round to the nearest cent.) The price is $ c. What is the risk-free interest rate for a 3-year maturity? The risk-free rate is %. (Round to two decimal places.) 5 5.85%

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