1. Suppose that a broker quotes the price of unit zero-coupon bonds, with maturity times of (0.5, 1, 1.5, 2) years, to be respectively (0.93, 0.9, 0.84, 0.82). Calculate the no arbitrage price of a 2-year bond with face-value 750,000, semi-annual coupons at rate 2% per annum, and redeemable below par at exactly half its face value. State your answer to the nearest pound