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Use the table below to find the 6-month, 1-year and 1.5-years Zero Rates. Explain your work. Time to Maturity (Years) Bond Principal Annual Coupon Price

Use the table below to find the 6-month, 1-year and 1.5-years Zero Rates. Explain your work.

Time to Maturity

(Years)

Bond Principal

Annual

Coupon

Price

Simple Rate

Zero Rate

0.5

100

0

99

a)

1

100

0

95.5

b)

1.5

100

10%

101

x

c)

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