What is the risk-free interest rate for a 3-year maturity

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Reference no: EM132005524

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

Maturity? (years)	1	2	3	4	5
Yield to Maturity	4.51	4.84	5.00?%	5.12?%	5.37?%

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 3-year maturity?

Note: Assume annual compounding.

Reference no: EM132005524

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