1. Calculate the quoted price a 3-year bond with annual coupon rate of 6%. The table below shows annualized spot rates for different maturities. Coupons are paid semi-annually.

Year to M	Spot Rates (%)
0.5	1.49
1	1.72
1.5	1.77
2	1.82
2.5	1.97
3	2.12
3.5	2.41
4	2.85

2. Use the spot rates of Question 1 (above) to calculate the theoretical prices for a STRIP (i.e., zero-coupon bond) for the maturity of 3 years.