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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 98.852%
2 95.351
3 91.544
4 87.480

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?

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