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

Maturity (years)  1              2                    3                 4          5

YTM                4.14%       4.55%            4.78%        4.99%      5.37%

 

a. What is the price per $100 face value of a three-year, zero-coupon, risk-free bond?

b. What is the price per $100 face value of a four-year, zero-coupon, risk-free bond?

c. What is the risk-free interest rate for a four-year maturity?