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3. Find zero rates using the bootstrap method. (15 pts) Bond (par=$100) Maturity (year) Annual coupon Bond 1 0.5 $0 Price Zero rate $97 ?

3. Find zero rates using the bootstrap method. (15 pts) Bond (par=$100) Maturity (year) Annual coupon Bond 1 0.5 $0 Price Zero rate $97 ? Bond 2 1.0 $8 $98 ? Bond 3 1.5 $12 $100 ? All coupons are paid semi-annually

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