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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
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. Calculate the yields on the zero coupon bonds and graph the yield curve. What is the shape of the yield curve? What is the yield on the zero coupon bond with a 1 -year term? % (Round to the nearest integer.) What is the yield on the zero coupon bond with a 2-year term? % (Round to the nearest integer.) What is the yield on the zero coupon bond with a 3-year term? % (Round to the nearest integer.) What is the yield on the zero coupon bond with a 4-year term? % (Round to the nearest integer.) The yield curve is (1). (Choose from the drop-down menu.) downward-sloping upward-sloping flat
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