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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) $96.11 $91.63 $86.89 $82.11 $77.06

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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) $96.11 $91.63 $86.89 $82.11 $77.06 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. a. Compute the yield to maturity for each bond. The yield on the 1-year bond is % (Round to two decimal places.)

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