Consider the following three bonds:

Bond	Coupon Rate	Maturity (years)	Price
A	0%	1.0	$963.06
B	6%	1.0	$1021.43
C	5%	1.5	$1011.69

Assume that coupons are paid every 6 months and the face values of all the bonds are $1,000.

(a) Determine the forward rate f 0.5,1 (in yearly term) on a 6-month Treasury bill 6 months from now. (Keep 4 decimal places, e.g. 0.1234)

(b) Determine the forward rate f0.5,1.5 (in yearly term) on a 12-month Treasury bill 6 months from now. (Keep 4 decimal places, e.g. 0.1234)

(c) Price the 1.5-year coupon bond 6 months from now. (Keep 2 decimal places, e.g. xxx.12)?

Additional info:

- it is a semi-annual

spot rates are

S_0.5 = 0.0354 , S₁= 0.0380, S_1.5 = 0.1271