On May 1, 2012, you obtained the following quotes for Treasury bonds:

MATURITY COUPON RATE (%) ASKED PRICE

11/30/2022 0.125 99.08

5/31/2023 0.125 97.226

11/30/2023 0.5 96.2

Use the bootstrapping method to obtain yields to maturity on 6-month, 12-month

and 18-month zero coupon bonds (the three term structure rates). In annualized

terms, these rates are equal to:

a. r6 months=2.1094%, P12 months=3.0890%, r18 months = 3.6302%

b. r6 months= 2.5691%, r12 months=3.4500%, r18 months= 3.8518%

c. r6 months =4.00%, r12 months= 3.00%,r18months = 3.00%

d. r6 months = 1.1500%, P12 months = 2.5421%, r18 months = 3.00%

e. r6 months =1.25%, r12 months= 1.25%, r18 months =5.00%