1. 1. [14 points] You observe the following Treasury bills and bond prices available in Saudi Arabia

Bond/Bill principal	Time to maturity	Annual coupon	Bond price
100	0.25	0	99.15
100	0.50	0	98.25
100	0.75	0	97.2
100	1	6.2 (Quarterly payments)	102
100	1.25	6.4 (Quarterly Payments)	102.5

1. Calculate the continuously compounded zero rates for maturities of 3 months, 6 months, 9 months, 12 months and 15 months. (Round your answer to the nearest thousandth. i.e. 1.123%)

2. Calculate the par yield for the following bonds:
   1. A 12-month bond that pays coupons semiannually.

2. A 12-month bond that pays coupons quarterly.

3. What is the continuously compounded yield on the coupon-paying bonds, which mature in 1 and 1.25 years?