Question: Question 3 (5 points): Consider three bonds: a 6% bond maturing 6 months from now with current price of $99.42, an 8% coupon bond maturing

Question 3 (5 points): Consider three bonds: a 6% bond maturing 6 months from now with current price of $99.42, an 8% coupon bond maturing 1 year from now with current price of $100.57, and a 5% coupon bond maturing 5 years from now with current price of $87.20. All bonds have $100 face value. Assume also that 5-year spot rate is 8.2%

a) (1 point) Find 6-month spot rate

b) (1 point) Find 1-year spot rate

c) (1 point) Find 1-year forward rate

d) (2 points) Find the price of 5-year 9% coupon bond with face value of $100

All interest rates are annual interest rates with semi-annual compounding unless specified otherwise. All coupon rates are annual coupon rates paid semi-annually unless specified otherwise.

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