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a) Given the semiannual swap curve data given below, find the discount factors implicit in the swap curve. T c 0.5 0.602% 1.0 1.190% 1.5

a) Given the semiannual swap curve data given below, find the discount factors implicit in the swap curve.

T c
0.5 0.602%
1.0 1.190%
1.5 1.498%
2.0 2.448%
2.5 2.847%
3.0 2.959%
3.5 3.234%
4.0 3.480%
4.5 3.882%
5.0 3.991%

b) Using the discount factor Zs you calculate in the previous question, calculate the zero-coupon bond yields (spot rates) for all the maturities in the table. Note that you have semi-annual compounding.

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