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We consider the following zero-coupon curve: Maturity (years) Zero-Coupon Rate (%) 1 4.00 2 4.50 3 4.75 4 4.90 5 5.00 1. What is the

We consider the following zero-coupon curve:

Maturity (years) Zero-Coupon Rate (%)

1 4.00

2 4.50

3 4.75

4 4.90

5 5.00

1. What is the price of a 5-year bond with a $100 face value, which delivers a 5% annual coupon rate?

2. What is the yield to maturity of this bond?

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