Question: The current yield curve for default free zero coupon bonds is as follows: Maturity (Years) YTM 1 10% 2 11% 3 12% What are the

The current yield curve for default free zero coupon bonds is as follows:

Maturity (Years)

YTM

1

10%

2

11%

3

12%

What are the current prices of the 1-year, 2-year, and 3-year zero-coupon bonds?

Question 13 options:

A.

1-year zero-coupon bond: $711.78

2-year zero-coupon bond: $811.62

3-year zero-coupon bond: $909.09
B.

1-year zero-coupon bond: $909.09

2-year zero-coupon bond: $811.62

3-year zero-coupon bond: $711.78
C.

1-year zero-coupon bond: $811.62

2-year zero-coupon bond: $909.09

3-year zero-coupon bond: $711.78
D.

1-year zero-coupon bond: $909.09

2-year zero-coupon bond: $711.78

3-year zero-coupon bond: $811.62

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