Question A:

You find the following par yield curve reported in the Wall Street Journal:

All yields are per annum semi$-$annual compounding.

a$)$ Compute the corresponding zero yields from the above information

b$)$ Price a $2-$yr T$-$note that pays $5\%$ p$.$a$.$ coupons

c$)$ If the expectation hypothesis is true, what is your best guess regarding

the $1-$yr zero yield in a year's time?