A bond trader is trying to estimate the yield (annual YTM) of zero coupon bond that matures in 1 year and 6 months with another semiannual bond paying 4% coupon with remaining years to maturity of 1 year and 6 months. The price of this 4% coupon $1,000 par value bond today is $1005, and the first coupon will be paid to you in 6 months.

The annual yield to maturity of the following zero coupon bonds today are quoted below:

YTM for 6 month zero coupon bond yield = 2%

YTM for 1 year zero coupon bond yield = 3%

All above yields are today's yield and are efficient.

Estimate the YTM (annual) for the 1.5 year ZCB.