Problem 4.2. The following table gives the prices of Treasury bonds: Bond Principal (S) 100 100 100 100 Time to Maturity (years) Annual Coupon ($)* Bond Price (8) 0.5 99 97 1.5 102.5 101.5 * Half the stated coupon is paid every six months (a) Calculate zero rates for maturities of 6 months, 12 months, 18 months, and 24 months. (6) What are the forward rates for the periods: 6 months to 12 months, 12 months to 18 months, 18 months to 24 months? (c) What are the 6-month, 12-month, 18-month, and 24-month par yields for bonds that provide semiannual coupon payments? (d) Estimate the price and yield of a two-year bond providing a semiannual coupon of 5% r . Problem 4.2. The following table gives the prices of Treasury bonds: Bond Principal (S) 100 100 100 100 Time to Maturity (years) Annual Coupon ($)* Bond Price (8) 0.5 99 97 1.5 102.5 101.5 * 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 5% r