The cash prices of 6-month and 1-year Treasury bills that do not pay coupons are $95 and $90, respectively.. A 1.5-year maturity instrument that pays a $4 coupon every six months currently sells for $94.00. The principal of all bonds is $100 and all interest rates are calculated using continuous compounding. Calculate the 1.5-year zero rate. 1. 0.109 2. 0.135 3. 0.122 4. There is no correct answer. 5. 0.105