Use the Table for the Question(s)below

question 1

Essay

Use the table for the question(s)below.
The following table summarizes prices of various default-free zero-coupon bonds (expressed as a percentage of face value):
-Compute the yield to maturity for each of the five zero-coupon bonds.

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Definitions:

Producer Surplus

The difference between the amount producers are willing and able to supply a good for and the actual amount received by them when the good is sold.

Consumer Surplus

The variance between the price consumers are ready to offer for a good or service and the price they actually incur.

Price Ceiling

A government-imposed limit on how high the price of a product can be charged in the market to protect consumers from high prices.

Consumer Surplus

The gap between the amount consumers are prepared to spend on a product or service and the amount they end up paying.