What is the risk-free interest for a five year maturity


Problem: Suppose the current zero-coupon yield curve for risk-free bonds is as follows:

Maturity (years) 1 2 3 4 5
_________________________
YTM 5.00 5.50 5.75 5.95 6.05

a) What is the price per$100 face value of a two year,zero-coupon,risk-free bond?

b) What is the price per $100 face value of a four year,zero coupon,risk free bond?

c) What is the risk-free interest for a five year maturity?

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