1.Determine the 6-month, 12-month, 18-month, and 24-month zero coupon continuously compounded spot rates from the following information using bootstrapping:

-The 6-month T-Bill is selling for $97.00

-A 12-month 8% coupon T-Bond is selling for $102.00

-A 18-month 5% coupon T-Bond is selling for $95.00

-A 24-month 4% coupon T-Bond is selling for $89.00

-(All prices are per $100 Par)

T

Annualized Rate

0.5

%

1

%

1.5

%

2

%