1. Each of the following bonds has 5 years to maturity and a face value of 100.

Bond	Price
12% coupon bond	A
6% coupon bond	B
Zero coupon bond	C

Price a five-year bond with a face value of 100 and a coupon of 8% using:

1. the 12% coupon bond and the zero coupon bond
2. the 6% coupon bond and the zero coupon bond.
3. hence, algebraically show that 0.5A + 0.5C = B