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Based on the Table of Zero Coupon Bond Prices, Below

Question 6

Multiple Choice

Based on the table of zero coupon bond prices, below, what is the shape of the yield curve? Each bond has a face value of $100.  Maturity  Price 195.24290.70386.38482.27\begin{array} { | c | c | } \hline \text { Maturity } & \text { Price } \\\hline 1 & 95.24 \\\hline 2 & 90.70 \\\hline 3 & 86.38 \\\hline 4 & 82.27 \\\hline\end{array}


A) Flat
B) Upward sloping
C) Downward sloping
D) Not enough information

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