Problem 1.2. The following table gives the prices of Treasury bonds: Bond Principal ($) 100 100 1000 100 Time to Maturity (years) Annual Coupon ($)* Bond Price ($) 0.5 0 99 1 0 97 1.5 6 1006 2 4 96.9 * Half the stated coupon is paid every six months (a) Calculate zero rates for maturities of 6 months, 12 months, 18 months, and 24 months. (6) What are the forward rates for the periods: 6 months to 12 months, 12 months to 18 months, 18 months to 24 months? (c) What are the 6-month, 12-month, 18-month, and 24-month par yields for bonds that provide semiannual coupon payments ? (d) Estimate the price and yield of a two-year bond providing a semiannual coupon of 4% per annum. . Problem 1.2. The following table gives the prices of Treasury bonds: Bond Principal ($) 100 100 1000 100 Time to Maturity (years) Annual Coupon ($)* Bond Price ($) 0.5 0 99 1 0 97 1.5 6 1006 2 4 96.9 * Half the stated coupon is paid every six months (a) Calculate zero rates for maturities of 6 months, 12 months, 18 months, and 24 months. (6) What are the forward rates for the periods: 6 months to 12 months, 12 months to 18 months, 18 months to 24 months? (c) What are the 6-month, 12-month, 18-month, and 24-month par yields for bonds that provide semiannual coupon payments ? (d) Estimate the price and yield of a two-year bond providing a semiannual coupon of 4% per annum