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Suppose the current, zero-coupon, yield curve for risk-free bonds is as follows:(Click on the following icon in order to copy its contents into a

Suppose the current, zero-coupon, yield curve for risk-free bonds is as follows:  (Click on the following icon

  

in order to copy its contents into a spreadsheet.)

Maturity (years)

 

1

 

2

 

3

 

4

 

5

 

Yield to Maturity

 

4.93%

 

5.42%

 

5.64%

 

5.88%

 

5.99%

 

a. What is the price per

$ 100$100

face value of a

33-year,

zero-coupon, risk-free bond?b. What is the price per

$ 100$100

face value of a

55-year,

zero-coupon, risk-free bond?c. What is the risk-free interest rate for a

22-year

maturity?

Note:

Assume annual compounding.




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