3.5 The following table gives the prices of four bonds. Bond # Bond Principal ($) Time to Maturity (years) Annual Coupon ($)* Bond Price ($) 1 100 0.5 0.0 98 2 100 1.0 0.0 95 3 100 1.5 6.2 101 4 100 2.0 8.0 104 *: Half of the stated coupon is paid every six months. (a) Calculate the zero rates for maturities of 6 months, 12 months, 18 months, and 24 months. (b) What are the forward rates for the 6-month periods: months 7 to 12, months 13 to 18, months 19 to 24? (c) What are the 6-month, 12-month, 18-month, and 24-month par yields for bonds that provide semiannual coupon payments? (d) Estimate the price and yield of a two-year bond providing a semiannual coupon of 7% per annum