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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 4.22% 4.55% 4.69%

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

Maturity (years) 1 2 3 4 5
Yield to Maturity 4.22% 4.55% 4.69% 5.08% 5.30%

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 1-year maturity?

Note: Assume annual compounding.

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