1)

R_0,.5=.04

R_0,1=.05

R_0,1.5=.055

R_0,2=.06

Assume for a) and b) this is a zero rate curve.

1. What is the price of a 1-year bond paying 6% coupons?
2. If a 1-year bond with 7% coupons is selling for 102-5+, is it rich or cheap with respect to this pricing structure?
3. Assume the repo rate makes the bond in b available at zero carry.Would you repo or reverse repo this bond?

Assume for d) this is a swap curve.

4. What are the zero rates for .5 and 1 take them out to 5 decimal places?