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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
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.) \begin{tabular}{|c|c|c|c|c|c|} \hline Maturity (years) & 1 & 2 & 3 & 4 & 5 \\ \hline Price (per $100 face value) & $95.73 & $91.29 & $86.54 & $81.82 & $76.58 \\ \hline \end{tabular} 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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