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

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 5-year maturity?

Note:

Assume annual compounding.

1 2 3 4 5 Maturity (years) Yield to Maturity 4.89% 5.22% 5.58% 5.76% 5.91%