The following table summarizes prices of various default-free zero-coupon bonds ($100 face value):(Click on the following icon in order to copy its contents into a spreadsheet.) Maturity (years) 1 2 3 4 5 Price (per $100 face value) $95.04 $90.60 $85.86 $80.97 $75.79 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? Note: Assume annual compounding. Question content area bottom Part 1 a. Compute the yield to maturity for each bond.

The yield on the 1-year bond is 5.22%. (Round to two decimal places.)

Part 2 The yield on the 2-year bond is 44.81%. (Round to two decimal places.)

Part 3 The yield on the 3-year bond is 61.18%. (Round to two decimal places.)

Part 4 The yield on the 4-year bond is 69.12%. (Round to two decimal places.)

Part 5 The yield on the 5-year bond is 73.61%. (Round to two decimal places.)

Is this correct?

b. Plot the zero-coupon yield curve (for the first five years).