You have estimated spot rates as follows:

r₁= 5.60%, r₂= 6.00%, r₃= 6.30%, r₄= 6.50%, r₅= 6.60%.

a. What are the discount factors for each date (that is, the present value of $1 paid in year t)? (Do not round intermediate calculations. Round your answers to 3 decimal places.)

Year	Discount Factors
1
2
3
4
5

b. Calculate the PV of the following $1,000 bonds assuming an annual coupon and maturity of : (i) 5.6%, two-year bond; (ii) 5.6%, five-year bond; and (iii) 10.6%, five-year bond. (Do not round intermediate calculations. Round your answers to 2 decimal places.)

	Present Value
5.60%, two-year bond
5.60%, five-year bond
10.60%, five-year bond

c. What should be the yield to maturity on a five-year zero-coupon bond? (Do not round intermediate calculations. Enter your answer as a percent rounded to 1 decimal place.)

Yield to maturity %