1. Assume semi-annual APRs for the following questions a. Suppose that 6-month, 12-month, 18-month, and 30-month zero rates are, respectively, 4%, 4.2%, 4.4%, 4.6%, and 4.8% per annum, assume semi-annual APRs. Estimate the cash price of a bond with a face value of 100 that will mature in 30 months and pays a coupon of 4% per annum semiannually. b. Suppose that 9-month and 12-month LIBOR rates are 2% and 2.3%, respectively. What is the forward LIBOR rate for the period between 9 and 12 months? What is the value of an FRA where 3% is received and LIBOR is paid $10 million for the period. All rates are compounded semi-annually. Assume the LIBOR is used as the risk-free discount rate. c. Suppose zero interest rates are as follows (semi-annual APRs) Maturity Rate (% (years) per annum) 1 2 2 3 3.7 4.2 4.5 Calculate forward interest rates for the second, third, and fourth years