Question 1 You have collected the following information from the Wall Street Journal 0.5-yr T-note trading at par with coupon rate 4.57% 1-yr T-note trading at par with ytm = 6.24% p.a. 1.5-yr T-note with coupon rate 5%, trading with ytm = 7.22% p.a. a) Compute the following zero yields from the above information Please report per annum semi-annual compounding yields. Enter your answers below Maturity Zero yields 0.5 1 1.5 b) From the above calculation, what is the price of a 1.5-yr T-note, face value $100 paying a coupon rate of 10% p.a. Enter your answer here c) What is the forward interest rate for a 1-yr loan starting 6 months from now? c) What is the forward interest rate for a 1-yr loan starting 6 months from now? (This is the 6x18 rate.) Please report a per annum semi-annual compounding rate. Enter your answer here d) Microsoft is currently selling for $29/share. What is its 1-yr forward price? Enter your answer here Question 1 You have collected the following information from the Wall Street Journal 0.5-yr T-note trading at par with coupon rate 4.57% 1-yr T-note trading at par with ytm = 6.24% p.a. 1.5-yr T-note with coupon rate 5%, trading with ytm = 7.22% p.a. a) Compute the following zero yields from the above information Please report per annum semi-annual compounding yields. Enter your answers below Maturity Zero yields 0.5 1 1.5 b) From the above calculation, what is the price of a 1.5-yr T-note, face value $100 paying a coupon rate of 10% p.a. Enter your answer here c) What is the forward interest rate for a 1-yr loan starting 6 months from now? c) What is the forward interest rate for a 1-yr loan starting 6 months from now? (This is the 6x18 rate.) Please report a per annum semi-annual compounding rate. Enter your answer here d) Microsoft is currently selling for $29/share. What is its 1-yr forward price? Enter your answer here