Question: Suppose the current, zero - coupon, yield curve for risk - free bonds is as follows: . a . What is the price per $

Suppose the current, zero

-

coupon, yield curve for risk

-

free bonds is as follows:

.

.

What is the price per $

100

face value of a

2 -

year, zero

-

coupon, risk

-

free bond?

.

What is the price per $

100

face value of a

5 -

year, zero

-

coupon, risk

-

free bond?

.

What is the risk

-

free interest rate for a

1 -

year maturity?

Note: Assume annual compounding.

.

What is the price per $

100

face value of a

2 -

year, zero

-

coupon, risk

-

free bond?

The price is $

, (

Round to the nearest cent.

)

Data table

(

Click on the following icon

in order to copy its contents into a spreadsheet.

)

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

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