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he cash prices of six-month and one-year Treasury bills are 95.0 and 90.0, respectively. A 1.5-year bond that will pay coupons of $5 every six
he cash prices of six-month and one-year Treasury bills are 95.0 and 90.0, respectively. A 1.5-year bond that will pay coupons of $5 every six months currently sells for $94.84. Calculate the 1.5-year zero rate (hint, you must compute the 6-month and 1-year zero rates).
a) 13.16%
b) 13.63%
c) 13.81%
d) 13.99%
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