The following table summarizes prices of various default-free, zero-coupon bonds (expressed as a percentage of face value):
Maturity (years) 1 2 3 4 5
Price (per $100 face value) $95.51 $91.05 $86.38 $81.65 $76.51
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.