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The coupon payments for the following bonds are paid semi-annually: Bond 1: Par= $100, Annual Coupon Rate = 0, Maturity= 0.5 yrs, Market Price=98 Bond

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The coupon payments for the following bonds are paid semi-annually: Bond 1: Par= $100, Annual Coupon Rate = 0, Maturity= 0.5 yrs, Market Price=98 Bond 2: Par= $100, Annual Coupon Rate = 4, Maturity= 1.0 yr, Market Price=98.8 Bond 3: Par= $100, Annual Coupon Rate = 6.2, Maturity= 1.5 yrs, Market Price=101 The continuously compounded zero rate for 18 months is: O (a) 4.041% 1- O (b) 4.062% O (c) 5.19% 0 (d) 5.44% 0 (c) 5.58%

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