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The following table summarizes prices of various? default-free zero-coupon bonds? ($100 face? value): Maturity? (years) 1 2 3 4 5 Price? (per $100 face? value)

The following table summarizes prices of various? default-free zero-coupon bonds? ($100 face? value):

Maturity? (years)

1

2

3

4

5

Price? (per $100 face? value)

?$96.0396.03

?$91.7191.71

?$87.0487.04

?$82.3382.33

?$77.1977.19

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.

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