Question 1 Suppose you observe the following (zero-coupon) yield curve. 0.5 Time to Maturity T Zero-coupon yield rt 0.060000% 1.0 0.120018% 1.5 0.195093% 0.270249% 0.335465% 3.0 0.400790% 2.0 Calculate the discout curve (i.e. calculate the discount factors Z(T) using the formula from class). Assume semi- annual compounding, Hint: In class, we had to following formula for calculating discount factors Z(T) from zero-coupon rates r(T) in the case of semi-annual compounding Z(T)=- Calculate the discout curve (i.e. calculate the discount factors using the formula from class). Assume semi-ar x compounding. Round to six digits after the decimal (e.. 0.987654). O Hold and drag to reorder 0.5-year Discount Factor = 0.999700 1.0-year Discount Factor = 0.998801 1.5-year Discount Factor = 0.988060 2.0-year Discount Factor = 1.000321 2.5-year Discount Factor = 99.887100 3.0-year Discount Factor = 0.994613 = 89.987564 = 0.997079 = 0.899875 = 0.991 Submit 1.2 Unanswered Calculate the price of a 5% coupon bond (paid annually) with maturity in 3 years. Assume $100 par value. Round to six digits after the decimal (e.g. 100.123456). Type your response