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Compute the yield to maturity for each bond

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Reference no: EM132904072

The following table summarizes prices of various? default-free zero-coupon bonds? (expressed as a percentage of the face? value):

Maturity (years)                       1           2          3          4                 5
Price (per $100 face value)    95.96   91.65   87.03   82.16     76.97

Problem a. Compute the yield to maturity for each bond, 1, 2, 3, 4, and 5-year bond.

Problem b. Plot the? zero-coupon yield curve? (for the first five? years).

Problem c. Is the yield curve upward? sloping, downward? sloping, or? flat?

Reference no: EM132904072

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