Bond quote
Face value ($)	Time to maturity (years)	Annual coupon payments (paid semi-annually)	bond price ($)	zero rate
100	0.5	0	98	4.0405%
100	1	0	97	?
100	1.5	15	115	?
100	2	20	?	5.500%

Using the Table above,

1. find the appropriate zero rates for1 year
2. find the appropriate zero rates for 1.5 year
3. find the 2-year bond price
4. find the par-yield for the 2-year-maturity bond

*Note1: zero rate for the 6 month period is done for you.

*Note 2: coupon payments given are yearly coupon payments, which these will be paid out semi-annually (i.e. every 6 months)

When doing calculations in this course, use at least 6 decimal places for accurate answers.

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