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Suppose the current, zero-coupon, yield curve for risk-free bonds is as follows: Maturity (years) Yield to Maturity 4 4 56% 4.99% 511% 546% 5 58%
Suppose the current, zero-coupon, yield curve for risk-free bonds is as follows: Maturity (years) Yield to Maturity 4 4 56% 4.99% 511% 546% 5 58% a. What is the price per S100 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 3-year maturity? Note: Assume annual compounding. a. What is the price per S100 face value of a 3-year, zero-coupon risk-free bond? The price is S(Round to the nearest cent)
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