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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

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 Price (% of face value)
1 98.252%
2 94.751
3 90.944
4 86.880

What is the 1-year interest rate?

Note: Do not round intermediate calculations. Enter your answer as a percent rounded to 2 decimal places.

What is the 2-year interest rate?

Note: Do not round intermediate calculations. Enter your answer as a percent rounded to 2 decimal places.

What is the 3-year interest rate?

Note: Do not round intermediate calculations. Enter your answer as a percent rounded to 2 decimal places.

What is the 4-year interest rate?

Note: Do not round intermediate calculations. Enter your answer as a percent rounded to 2 decimal places.

Is the yield curve upward-sloping, downward-sloping, or flat?

Is this the usual shape of the yield curve?

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