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2. The information of all available bonds in a market is given below. Face Value Month(s) to Maturity Annual Coupon Rate Bond Price 100 6

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2. The information of all available bonds in a market is given below. Face Value Month(s) to Maturity Annual Coupon Rate Bond Price 100 6 0 96.08 100 12 40% 128.89 200 14.4 30% ? 200 18 10% 191.54 200 21 20% 233.23 Coupons are paid semiannually and one has just been paid. Round your answers to 2 decimal places. (a) Determine the 12-month and 18-month zero rates. [7 marks] [7 marks] (b) Determine the price of the third bond. () Determine the bond yield of the last bond. [7 marks] 2. The information of all available bonds in a market is given below. Face Value Month(s) to Maturity Annual Coupon Rate Bond Price 100 6 0 96.08 100 12 40% 128.89 200 14.4 30% ? 200 18 10% 191.54 200 21 20% 233.23 Coupons are paid semiannually and one has just been paid. Round your answers to 2 decimal places. (a) Determine the 12-month and 18-month zero rates. [7 marks] [7 marks] (b) Determine the price of the third bond. () Determine the bond yield of the last bond. [7 marks]

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