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The following table gives the prices of Treasury Bonds. What is the zero-rate (continuously compounded) for 1.5 years? Bond Principal ($) Time to Maturity (years)

The following table gives the prices of Treasury Bonds. What is the zero-rate (continuously compounded) for 1.5 years?

Bond Principal ($)

Time to Maturity (years)

Annual Coupon ($) Bond Price ($)
100 0.5 0 97.7
100 1.0 0 94.7
100 1.5 7.1 100.5

(enter percentage in decimal form to four decimal places, i.e. eleven and a half percent would be entered as 0.1150)

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