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The following table summarizes prices of various default-free zero-coupon bonds ($100 face value): Maturity (years) Price (per $100 face value) $96.44 2 3 $91.99

The following table summarizes prices of various default-free zero-coupon bonds ($100 face value): Maturity (years) Price (per $100 face value) $96.44 2 3 $91.99 $87.43 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 5 $82.58 $77.50

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