5. a) The six-month and one-year zero rates are both 12% per annum. For a bond that has a life of 18 months and pays a coupon of 10% per annum (with semiannual payments and one having just been made), the yield to maturity is 12.45% per annum. What is the bonds price? What is the 18-month zero rate? All rates are quoted with semiannual compounding. The bond has a face value of $100.

b) Next, suppose that the bond is putable in one year at a par value. Determine the yield to put.