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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 S 100 face

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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 S 100 face value) $95.51 $91.05 $86.38 $81.65 $76.51 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? b. Plot the zero-coupon yield curve (for the first five years). The following graph is the zero-coupon yield curve: (Select the best choice below.) OA YIELD CURVE YIELD CURVE Yield to Maturity (%) Yield to Maturity (%)

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