You observe the Treasury yield curve below (all yields are shown on a bond-equivalent basis). Please use the given information to answer the following questions. The 0.5-year and one-year securities are zero-coupon instruments.

Year	YTM	Coupon rate	Price	Spot Rate	Z Rate
0.5	1.50%	0	P1=		Z1=
1.0	1.55%	0	P2=		Z2=
1.5	1.68%	1.20%			Z3=
2.0	1.72%	2.25%			Z4=

1. Please find out the price for P1 and P2. .

a. P1 = $100; P2= $100

b. P1 = $99.256; P2 = $98.468

c.P1 = $99.258; P2 = $97.661

d. P1 = $102.63; P2 = $105.58