The 6-month and 1 -year zero rates are both (10 %) per annum. For a bond that
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The 6-month and 1 -year zero rates are both \(10 \%\) per annum. For a bond that has a life of 18 months and pays a coupon of \(8 \%\) per annum (with semiannual payments and one having just been made), the yield is \(10.4 \%\) per annum. What is the bond's price? What is the 18 -month zero rate? All rates are quoted with semiannual compounding.
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