uestion 3 The following information about bond prices is provided: Coupon Rate (p.a. semi- annual compoundin 0 5% 10% 5% Maturity (in years) Bond Price 0.5 99.50 103.19 109.00 100.00 (All bonds have a face value of S100. Coupon rates are expressed with semi-annual compounding) Required (a) Calculate the continuously compounded zero rates for the bonds above. Record your (4 marks) (b)What are the forward rates for the periods: 6 months to 12 months, 12 months to 18 (3 marks) Estimate the price ofatwo-year bond providing a semi-annual coupon of 7% per annum answer to 3 decimal places in percentage i.e. xxxx% or 0.xxxxx months, 18 months to 24 months? (c) (3 marks) uestion 3 The following information about bond prices is provided: Coupon Rate (p.a. semi- annual compoundin 0 5% 10% 5% Maturity (in years) Bond Price 0.5 99.50 103.19 109.00 100.00 (All bonds have a face value of S100. Coupon rates are expressed with semi-annual compounding) Required (a) Calculate the continuously compounded zero rates for the bonds above. Record your (4 marks) (b)What are the forward rates for the periods: 6 months to 12 months, 12 months to 18 (3 marks) Estimate the price ofatwo-year bond providing a semi-annual coupon of 7% per annum answer to 3 decimal places in percentage i.e. xxxx% or 0.xxxxx months, 18 months to 24 months? (c)