B.1 Suppose the 6-month, 12-month, 18-month, 24-month, 30-month, and 36 month zero rates are 5%, 5.2%, 5.4%, 5.5%, 5.7%, and 5.9% p. a. with continuous compounding respectively. a) Estimate the price of a 3-year, 4% semiannual bond. b) Calculate the yield of the bond in part (a) if it is issued at the price estimated in Part (a). (Please write out the equation from which the bond yield can be solved). c) Calculate the par yield of the bond in Part (a), and explain the meaning of par yield. B.1 Suppose the 6-month, 12-month, 18-month, 24-month, 30-month, and 36 month zero rates are 5%, 5.2%, 5.4%, 5.5%, 5.7%, and 5.9% p. a. with continuous compounding respectively. a) Estimate the price of a 3-year, 4% semiannual bond. b) Calculate the yield of the bond in part (a) if it is issued at the price estimated in Part (a). (Please write out the equation from which the bond yield can be solved). c) Calculate the par yield of the bond in Part (a), and explain the meaning of par yield