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19.4 The annual zero rate for a 6-month investment is 10.5%. The annual zero rate for a one-year investment is 10.9%. All rates are continuously

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19.4 The annual zero rate for a 6-month investment is 10.5%. The annual zero rate for a one-year investment is 10.9%. All rates are continuously compounded. A 1.5-year bond with 11% coupon rate and semiannual coupons on a face value of $100 sells for $96.50. 1. Use the bootstrap method to determine the 1.5-year zero rate. 2. What is the value of a 1.5-year bond with 11% coupon rate, paid semiannually, and a face value of $100

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