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The table below shows market prices for four zero coupon bonds with four different terms: one, two, three, and four years. The bonds all have

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The table below shows market prices for four zero coupon bonds with four different terms: one, two, three, and four years. The bonds all have a face value of $1,000. The yield curve derived from the bond prices in the table is best described as which of the following? Term (years) 1 Price (S) 970.8738 2 933.5107 3 888.9964 4 822.7025 O a, upward sloping with a 1% spread between short-and long-term yields Ob downward sloping with a 2% spread between short- and long-term yields Oc downward sloping with a 1% spread between short- and long-term yields Od, upward sloping with a 2% spread between short- and long-term yields e. flat

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