Question: All yields are compounded semi-annually Maturity Yield 0.5 1% p.a. 1 2.5% p.a. 1.5 3.5% p.a. 2 4.3% p.a. A. Compute zero yields from information

All yields are compounded semi-annually

Maturity Yield

0.5

 1% p.a.
1

2.5% p.a.
1.5 3.5% p.a.
2 4.3% p.a.

A. Compute zero yields from information in the chart

B. What is the price of a 2 year T-note that pays 5% p.a. coupons?

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