1. Prices of several bonds are given below:

   *Half

   Bond Principal($)	Time to maturity(years)	Annual coupon*($)	Bond price($)
   100	0.5	0	98.9
   100	1	0	97.5
   100	1.5	4	101.6
   100	2	4	101.9

   the stated coupon is assumed to be paid semiannually. (a) Use the bootstrap method to find the 0.5-year, 1-year, 1.5-year and 2-year zero rates per annum with continuous compounding. (b) What is the continuously compounded forward rate for the period between the 1-year point and the 2-year point?