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The following table summarizes prices of various default-free zero-coupon bonds (expressed as a percentage of the face value) Maturity (years) Price (per $100 face value)

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The following table summarizes prices of various default-free zero-coupon bonds (expressed as a percentage of the face value) Maturity (years) Price (per $100 face value) 2 3 4 $96.99 $92.51 $83.14 $78.06 $87.86 a. Compute the yield to maturity for each bond. b. Plot the zero-coupon yield curve (for the first five years). c. Is the yield curve upward sloping. downward sloping, or flat? a. Compute the yield to maturity for each bond. The yield on the 1-year bond is%. (Round to two decimal places.) The yield on the 2-year bond is%. (Round to two decimal places.) % . (Round to two decimal places.) The yield on the 3-year bond is The yield on the 4-year bond is%. (Round to two decimal places.) %. (Round to two decimal places.) The yield on the 5-year bond is b. Plot the zero-coupon yield curve (for the first five years) The fnlewina aranh is the zen-onunnn vinid nuryn: (Select the hest chninn helrw Click to select your answer(s) 5.0- 5.0- 4.5- 4.5 8 40- 40 3.5- 3.5- 3.0- 3.0- 2.5 2.5 2.0 2.0- Maturity (years) Maturity (years) c. Is the yield curve upward sloping, downward sloping, or flat? (Select from the drop-down menu.) Click to select your answers). ( % ) Aquneyy os paA Yield to Maturity (%)

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