6 months	1 year	18 months	2 years
0.4%	0.5%	0.6%	0.7%

The above spot rates relate to aMicrosoft Corp 2 year bond with semi annual coupon payment with Coupon rate 1.625/2 = 0.8125. and the market price is 101.1

1. There is another Microsoft Corp 2.5 year semi-annual 2% coupon paying bond in the market priced at $101.00. Using bond-specific spot rates above in Question 5 (for 0.5 year, 1 year, 1.5 year and 2 years), bootstrap 2.5-year spot rate for the bond. Show calculations. (3 marks)