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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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