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Use table B to Calculate Zero Rates for maturities of 6 months, 12 months and 18 months (1.5yrs). Note the annual coupon is paid semiannually!
Use table B to Calculate Zero Rates for maturities of 6 months, 12 months and 18 months (1.5yrs). Note the annual coupon is paid semiannually! (Hint: As shown in class if $97 present value will give you $100 in 6 months with continuous compounding what is the zero rate? DO that for the ones you can and then substitute your answers to solve for the one with the coupons
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