Question 6 (10 points) The following table gives Treasury zero rates and cash flows on a Treasury bond: (Zero rates are continuously compounded) Maturity (years) Zero rate Coupon payment Principale 0.52 1.8% $18 1.02 2.0% $182 1.52 2.3% $182 2.02 2.7% $182 $1000 (a) Find the forward rate for the period from year 0.5 to 1.5; (2 points) (b) Calculate the bond's price; (4 points) (c) Calculate the bond's par yield. (4 points) 2