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The following table summarizes prices of various default - free zero - coupon bonds ( expressed as a percentage of the face value ) :
The following table summarizes prices of various defaultfree zerocoupon bonds expressed as a percentage of the face value:
a Compute the yield to maturity for each bond.
b Plot the zerocoupon yield curve for the first five years
c Is the yield curve upward sloping, downward sloping, or flat?
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tableMaturity years
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