We know that the 6 month zero bond price is $94.9; the 1 year coupon bond price is $90.0 with semi-annual coupon rate 4%; the 1.5 year coupon bond price is $96.0 with semi-annual coupon rate 8%. Note that the face value of the bonds are $100.

What is the annual 1 year zero rate? Please work on a continuous compounding base.

		10.47%
		7.84%
		7.87%
		14.39%
		10.57%
		14.65%
		8.16%
		10.31%
		8.60%