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4 . 3 2 . The table below gives Treasury zero rates and cash flows on a Treasury bond. Zero rates are continuously compounded. (

4.32. The table below gives Treasury zero rates and cash flows on a Treasury bond. Zero rates are continuously compounded.
(a) What is the bond's theoretical price?
(b) What is the bond's yield assuming it sells for its theoretical price?
\table[[Maturity (years),Zero rate,Coupon payment,Principal],[0.5,2.0%,$20,],[1.0,2.3%,$20,],[1.5,2.7%,$20,],[2.0,3.2%,$20,$1,000
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