Question: Calculate zero and forward rates using the following information. Face value Price Maturity in years Coupon 100 98 0.5 0.00 100 96 1 0.00 100

Calculate zero and forward rates using the following information.

Face value

Price

Maturity in years

Coupon

100

98

0.5

0.00

100

96

1

0.00

100

99.25

1.5

1.5 every six months. Total 3.0 per year.

100

99.90

2

2.0 every six months. Total 4.0 per year.

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