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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 4.24% 4.56% 4.81%

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

Maturity (years)

1

2

3

4

5

Yield to Maturity

4.24%

4.56%

4.81%

4.94%

5.26%

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

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

$nothing.

(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

$nothing.

(Round to the nearest cent.)c. What is the risk-free interest rate for a

3-year

maturity?The risk-free rate is

nothing%.

(Round to two decimal places.)

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