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Face Value/Principle Time to Maturity Annual Coupon Rate Bond price 100 6 0 96 100 12 0 90 100 18 8 95 Half the stated

Face Value/Principle	Time to Maturity	Annual Coupon Rate	Bond price
100	6	0	96
100	12	0	90
100	18	8	95

Half the stated coupon is assumed to be paid every six months. Use semi-annual compounding as interest rate measurement.

Calculate (annualised) zero rates for maturities of 6 months, 12 months and 18 months.

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