Question A: You find the following par yield curve reported in the Wall Street Journal: Maturity Par yields 0.5 1 2.5% p.a. 1.5 3.5% p.a. 2 4.3% p.a. 1% p.a. 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