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The following table summarizes prices of various​ default-free zero-coupon bonds​ (expressed as a percentage of the...

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) $95.06, $90.74, $86.20, $81.41, $76.40

a. Compute the yield to maturity for each bond.

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

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

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