5. The table below shows various bond prices at different maturity levels for zero coupon bonds. Based on this information, how would you describe the shape of the yield curve - is it: flat, upward sloping, downward sloping or there is not enough information present to make a determination? What does this shape mean? Note that the bonds all have $1,000 face value. (10 marks) price 950.24 900.70 860.38 820.27 maturity 6. The current yields for zero-coupon bonds with varying maturities are outlined in the table below What is the forward rate from the end of year 2 to the end of Year 3? What does this rate denote? (5 marks) Maturity ield 2.75% 3.25% 3.65% 4.00% 4.15% 7. The nominal rate of interest is 6% and the real rate of interest is 3%, what is the expected inflation rate? (2 marks)