The coupon payments for the following are paid semi-annually: Bond 1: Par= $100, Annual Coupon Rate = 0, Maturity=0.5 yeras. Market Price =98 Bond 2: Par =$100, Annual Coupon Rate = 4, Maturity = 1 year, Market Price = 98.8 Bond 3: Par = $100, Annual Coupon Rate = 6.2, Maturity = 1.5 years, Market Price= 101

1) The 12 - month par yield for bonds that pay semi-annual coupon payments is:

a) 4.081%

b)5.12%

c) 5.24%

d)5.351%

e)5.597%

2) The 18 - month par yield for bonds that pay semi-annual coupon payments is:

a) 4.081%

b) 5.12 %

c) 5.24%

d)5.351%

e)5.597%