QUESTION 4 [8 marks] The following table gives the prices of bonds: Bond Principal or Face Value Time to Maturity (years) Semi - annual Coupon Rate ($)* 0.0 0.0 Bond Price ($) ($) 100 100 100 0.50 1.00 1.50 94 7.0% * Note: For all bonds one-half the stated coupon (where relevant) is assumed to be paid every six months. That is, in respect of the bond that matures in 1.5 years, a coupon payment of $3.50 is paid every 6 months with the final coupon and principal repaid at maturity. Calculate zero rates for maturities of 0.5 years, 1 year and 1.5 years and the forward rate between 1 year and 1.5 years. Record your answer to 3 decimal places in percentage i.e. X.xxx% or 0.xxxxx (8 marks)