IMPORTANT. Your solutions should be entirely your own and based on your own understanding. All problems need to seriously attempted otherwise your submission will be disregarded. All solutions should be complete, concise, well-motivated, well- organized and legible. Exercise 1. The 6-month, 12-month, 18-month, and 24-month zero rates are 4%,4.5%, 4.75% and 5%, with semiannual compounding a) What are the rates with annual compounding. (b) What are the rates with continuous compounding (c) Consider a 2-year bond providing semiannual coupon of 8% per annum. Estimate the price of this bond using the given zero rates. d) Estimate the yield of this bond using the result in (c)