Maturity (years) Zero rate (% continuous compounding)
0.5 5.0%
1.0 5.8%
1.5 6.4%
2.0 6.8%
Coupon rate: 6%
Coupon frequency: Semi-annual
Coupon payment: $3.00
Maturity: 2 years
Bond Price= $98.39
PV of first coupon $2.93
PV of second coupon $2.83
PV of third coupon $2.73
PV of fourth coupon $2.62
PV of face value $87.28
Maturity (years) Zero rate (% continuous compounding)
0.5 6.76%
1.0 6.76%
1.5 6.76%
2.0 6.76%
Coupon rate: 6%
Coupon frequency: Semi-annual
Coupon payment: $3.00
Maturity: 2 years
Bond Price= $98.39
PV of first coupon $2.90
PV of second coupon $2.80
PV of third coupon $2.71
PV of fourth coupon $2.62
PV of face value $87.35
Maturity (years) Zero rate (% continuous compounding)
0.5 6.76%
1.0 6.76%
1.5 6.76%
2.0 6.76%
Coupon rate: 6.88%
Coupon frequency: Semi-annual
Coupon payment: $3.44
Maturity: 2 years
Bond Price= $100.00
PV of first coupon $3.32
PV of second coupon $3.21
PV of third coupon $3.11
PV of fourth coupon $3.00
PV of face value $87.35
Maturity (years) Zero rate (% continuous compounding)
0.5 5.0%
1.0 5.8%
1.5 6.4%
2.0 6.8%
Coupon rate: 6.87%
Coupon frequency: Semi-annual
Coupon payment: $3.44
Maturity: 2 years
Bond Price= $100.00
PV of first coupon $3.35
PV of second coupon $3.24
PV of third coupon $3.12
PV of fourth coupon $3.00
PV of face value $87.28