You observe the following Treasury bills and bond prices available in Saudi Arabia

Bond/Bill principal	Time to maturity	Annual coupon	Bond price
100	.25	0	99.15
100	.5	0	98.25
100	.75	0	97.2
100	1	6.2	102
100	1.25	6.4	102.5

1. Calculate zero rates for maturities of 3 months, 6 months, 9 months, 12 months and 15 months

2. Calculate the par yield for the following bonds:

   1. A 12-month bond that pays coupons semiannually.

   2. A 12-month bond that pays coupons quarterly

3. What is the continuously compounded yield on the coupon-paying bonds, which mature in 1 and

   1.25 years