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You observe the treasury yield curve below (all yields are shown on a bond equivelant basis). The .5 year and one year securities are zero

You observe the treasury yield curve below (all yields are shown on a bond equivelant basis). The .5 year and one year securities are zero coupon instruments..256

Year YTM Coupon Rate Current Price Z Rate

.5 1.50% 0 $99.256 z1

1.0 1.55% 0 $98.468 z2

1.5 1.68% 1.20% $99.291 z3

2.0 1.72% 2.250% $101.037 z4

Please find out: Z3 = and Z4= (Show work)

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