Given the observed yields below, what is the six-month spot rate, six months from now for a bond maturing in 1 year?

6-month par yield = 1.0% 1-year par yield = 1.5% (both are annualized)

Solve using the standard bond value formula: PV = C₁/(1+y₁)¹ + C₂/(1+y₂)² + + C_n/(1+y_n)ⁿ

Hint: Assume a current price of 100 and the coupon rate is equal to the 1-year yield. Use 6 decimals of precision as you work through the problem. Enter your answer in percent format with 4 decimals.

Please show work and step-by-step! Thank you!