Problem:
Use the following information to answer the question (s) below
Maturity (years) 1 2 3 4 5
Zero- coupon YTM 3.25% 3.50% 3.90% 4.25% 4.40%
Consider a four year default free bond with an annual coupon rate of 4.5% and a face value of $100. The YTM on this bond is closest to: