Based on the bond information provided in Table 1, calculate the missing zero rates Z 0 5 ,Z 1 and Z 1 5 Table 1 Time to Maturity (years) Coupon Rate ( p a ) Face Value Price Annualised Zero Rate 0 5 0 $100 $97 77 Z 0 5 1 0 0 $100 $95 12 Z 1 1 5 4 $100 $98 20 Z 1 5 Note that all zero rates quoted are continuously compounded Coupons are paid semi annually

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Question: Based on the bond information provided in Table 1, calculate the missing zero rates Z 0.5 ,Z 1 and Z 1.5 . Table 1 Time

Based on the bond information provided in Table 1, calculate the missing zero rates Z_0.5,Z₁ and Z_1.5.

Table 1

Time to Maturity (years)	Coupon Rate *(p.a.)*	Face Value	Price	Annualised Zero Rate
0.5	0%	$100	$97.77	Z_0.5
1.0	0%	$100	$95.12	Z₁
1.5	4%	$100	$98.20	Z_1.5

Time to Maturity (years)

Coupon

Rate

(p.a.)

Face Value

Price

Annualised

Zero

Rate

0.5

$100

$97.77

Z_0.5

1.0

$100

$95.12

Z₁

1.5

$100

$98.20

Z_1.5

Note that all zero rates quoted are continuously compounded. Coupons are paid semi-annually.

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