Finding zero rates

Bond pricing conventions used are the same as Australia, except that here, all half-years have the same number of days and bond transactions are settled on

the trade date. Each of the following four government bonds has just made a half-yearly coupon payment.

Bond Term (months) Coupon rate pa Yield pa

A 6 12% 6.010%

B 12 9% 6.674%

C 18 6% 7.056%

D 24 2% 7.260%

Yields have been calculated using Australian conventions.

Use the bootstrap method to estimate zero rates for terms of 6, 12, 18 and 24 months. Show your calculations.

Please explain how you reach the solution.

Thank you!