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The following table shows the prices of a sample of Treasury bonds, all of which have coupon rates of zero. Each bond makes a

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The following table shows the prices of a sample of Treasury bonds, all of which have coupon rates of zero. Each bond makes a single payment at maturity. Years to Maturity 1 2 3 4 Price (% of face value) 97.452% 93.951 90.144 86.080 a. What is the 1-year interest rate? Note: Do not round intermediate calculations. Enter your answer as a percent rounded to 2 decimal places. b. What is the 2-year interest rate? Note: Do not round intermediate calculations. Enter your answer as a percent rounded to 2 decimal places. c. What is the 3-year interest rate? Note: Do not round intermediate calculations. Enter your answer as a percent rounded to 2 decimal places. d. What is the 4-year interest rate? Note: Do not round intermediate calculations. Enter your answer as a percent rounded to 2 decimal places. e. Is the yield curve upward-sloping, downward-sloping, or flat? f. Is this the usual shape of the yield curve? Answer is not complete. 2.93% X a. Interest rate b. Interest rate c. Interest rate d. Interest rate e. Is the yield curve upward-sloping, downward-sloping, or flat? f. Is this the usual shape of the yield curve?

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