Zero-coupon Bond	Year	Price
A	1	979.09
B	2	921.72
C	3	831.68
D	4	782.12

Consider the following zero-coupon bonds, each of which has a par value of $1,000: Zero-coupon Bond Year Price A 1 979.09 B 2 921.72 C 3 831.68 D 4 782.12

a) Calculate the spot rate for each zero coupon b) Plot the yield curve from these zero-coupon bonds with time to maturity on the horizontal axis and spot rate on the vertical axis. c) Use the theories discussed in class to explain why the yield curve slopes upward or downward. d) What is the price of a 4-year maturity bond with a 6% coupon rate paid annually? (Par value = $1,000). e) Given the answer to question (d), calculate the yield to maturity for this 4-year coupon bond. f) Calculate the duration of the above 4-year coupon bond. g) If the market yield changes by 0.05% in the next few minutes, what is the expected percentage price change of the bond over the next few minutes?