6.1.3 A 10% bond with face amount 100 matures in 3 years. (a) Find the value of the bond based on each of the following term nominal annual spot rate convertible semiannually for a t-year structures for zero coupon bond spot rates, where r, denotes the n2 =.08 ri=.0775 = term zero coupon bond. (i) rs = .075 1.5 =.08 12.5 =.0825 m3 = .085 (ii) rs =.14 r1 =.1375 11.5 =.135 m2 = 1325 72.5 = .13 n3 =.1275 (iii) rs =.12 71.5 =.12 12 =.12 =.12 13 = .12 12.5 =.12 (b) For each of the bond prices found in (a), find the corresponding yield to maturity. (c) Repeat part (a) for an 8% bond and for a 12% bond