Question: Use the swap zero coupon rates to value two coupon bonds, each with face value $1,000,000 with maturity five years but with differing six-month coupon

Use the swap zero coupon rates to value two coupon bonds, each with face value $1,000,000 with maturity five years but with differing six-month coupon rates as follows:

(i) A coupon rate of 10%

(ii) A coupon rate of 5%

(Begin by computing the zero rates for the last four time periods.)

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