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Use the Table for the Question(s) Below -Based Upon the Information Provided in the Table Above, You

Question 48

Multiple Choice

Use the table for the question(s) below.
The following table summarises prices of various default-free zero-coupon bonds (expressed as a percentage of face value) :
 Maturity (years)  12345 Price (per $100 face value)  94.5289.6885.4081.6578.35\begin{array} { l c c c c c } \hline \text { Maturity (years) } & \mathbf { 1 } & \mathbf { 2 } & \mathbf { 3 } & \mathbf { 4 } & \mathbf { 5 } \\\hline \text { Price (per } \$ 100 \text { face value) } & 94.52 & 89.68 & 85.40 & 81.65 & 78.35 \\\hline\end{array}
-Based upon the information provided in the table above, you can conclud?


A) that the yield curve is downward sloping.
B) nothing about the shape of the yield curve.
C) that the yield curve is upward sloping.
D) that the yield curve is flat.

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