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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 $100 face

 

The following table summarizes prices of various default-free zero-coupon bonds (expressed as a percentage of the face value): Maturity (years) Price (per $100 face value) a. Compute the yield to maturity for each bond. b. Plot the zero-coupon yield curve (for the first five years). 1 $96.31 c. Is the yield curve upward sloping, downward sloping, or flat? 2 $91.86 a. Compute the yield to maturity for each bond. The yield on the 1-year bond is %. (Round to two decimal places.) 3 4 5 $87.30 $82.51 $77.43

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