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3. Suppose you observe the following information related to Treasury yields. Each bond pays a semi-annual coupon. Years Coupon YTM Price Zero-coupon 0.5 0.00%

3. Suppose you observe the following information related to Treasury yields. Each bond pays a semi-annual coupon. Years Coupon YTM Price Zero-coupon 0.5 0.00% 6.25% 96.970 ? 1 0.00 6.45 ? 1.5 6.65 6.65 100.000 2 6.80 6.85 99.908 2.5 6.95 7.05 99.774 3.0 6.95 7.25 99.204 222222 ? ? ? ? ? a. Calculate the missing bond prices and zero-coupon rates.

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