Q4. Use the semi-annually compounded yield curve in the following table to price the some xed income securities:

(Please show all computational Steps for future reference)

Maturity T | Yield r2(0,T)

0.50 | 6.49%

1.00 | 6.71%

1.5 | 6.84%

2 | 6.88%

(a) 1.5-year zero coupon bond

(b) 2-year coupon bond paying 15% semiannually

(d) 1.5-year coupon bond paying 9% annually

(e) 2-year oating rate bond with zero spread and semiannual payments

(f) 1.5-year oating rate bond with zero spread and annual payments. For this question, assume r1 (0.5,0.5) = 6%.

(h) 1.5-year oating rate bond with 40 basis point spread with annual payments. For this question, assume r1 (0.5,0.5) = 6%.