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Suppose the current, zero-coupon, yield curve for risk-free bonds is as follows: ...

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Finance

Suppose the current, zero-coupon, yield curve for risk-free bonds is as follows:

Maturity (years)

1

2

3

4

5

Yield to Maturity

4.33%

4.76%

4.88%

5.15%

5.32%

a. What is the price per $100 face value of a 3-year, zero-coupon risk-free bond?

b. What is the price per $100 face value of a 5-year, zero-coupon, risk-free bond?

c. What is the risk-free interest rate for a 5-year maturity? Note: Assume annual compounding.

a. What is the price per $100 face value of a 3-year, zero-coupon risk-free bond? The price is $_______. (Round to the nearest cent.)

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