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Below is a list of zero coupon bonds for various maturities: Maturity Price 6 Months 96.5251 12 months 92.9913 18 months 89.1566 a) Calculate the

Below is a list of zero coupon bonds for various maturities:

Maturity Price
6 Months

96.5251

12 months

92.9913

18 months

89.1566

a) Calculate the 6-month, 12-month, and 18-month spot interest rates. b) An 8% coupon bond will mature in 18 months. Calculate the price of this bond.

c) Calculate the implied forward rate for 6 months to 12 months (6F12).

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