The following table gives Treasury zero rates and cash flows on a Treasury bond:

Maturity (years	Zero rate	Coupon payment	Principal
0.5	1.0%	$30
1.0	1.1%	$30
1.5	1.3%	$30
2.0	1.6%	$30
2.5	2.0%	$30
3.0	2.5%	$30	$1000

2.

The zero curve is downward sloping. Define X as the 1-year par yield, Y as the 1-year zero rate and Z as the forward rate for the period between 1 and 1.5 year. Which of the following is true?

1. X < Y < Z
2. Y < X < Z
3. X < Z < Y
4. Z < Y < X
5. None of the above are correct

Zero rates are compounded continuously. What is the bonds theoretical price?