Question 1. Suppose there are five risk-free bonds traded in the market with maturities 1, 2, 3, 5, 10 years, all paying 4% p.a. semiannual coupons on a face value of $100, that is, each semiannual coupon is $2. At time 0 the bond prices are given by the following table. Maturity (years) 1 2 3 Bond price ($ 102.5 102.5 100.0 5 10 98.6 93.4 Show that the value of the zero-coupon yield curve is 0.014670 at maturities 0.5, 1 years, and 0.027076 at maturities 1.5, 2 years, and then find all the other values of the zero-coupon yield curve at maturities of the form m/2 years, where m E {5, 6,..., 20}. [4 marks]