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You have collected the following information from the Wall Street Journal 0 . 5 - yr T - note trading at par with coupon rate

You have collected the following information from the Wall Street Journal
0.5-yr T-note trading at par with coupon rate 3.38%
1-yr T-note trading at par with ytm =4.98% p.a.
1.5-yr T-note with coupon rate 5%, trading with ytm =5.96% p.a.
a) Compute the following zero yields from the above information
Please report per annum semi-annual compounding yields.
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Maturity
Zero yields
0.5
1
1.5
b) From the above calculation, what is the price of a 1.5-yr T-note, face value $100
paying a coupon rate of 10% p.a.
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c) What is the forward interest rate for a 1-yr loan starting 6 months from now ?
(This is the 6x18 rate.) Please report a per annum semi-annual compounding rate.
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d) Microsoft is currently selling for $29/share. What is its 1-yr forward price?
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