1.) Calculate the 1.5-year forward rate?

 

2.) Calculate the price of two-year bond providing a semi-annual coupon of 7% per annum?

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The Treasury bond prices in this table are DIFFERENT from the last problem's. Bond Principal ($) Time to Maturity (yrs) Annual Coupon ($)* 0.0 100 0.5 100 1.0 0.0 100 6.2 100 8.0 *Half the stated coupon is paid every six months 1.5 2.0 Bond Price ($) 98 95 101 104 The Treasury bond prices in this table are DIFFERENT from the last problem's. Bond Principal ($) Time to Maturity (yrs) Annual Coupon ($)* 0.0 100 0.5 100 1.0 0.0 100 6.2 100 8.0 *Half the stated coupon is paid every six months 1.5 2.0 Bond Price ($) 98 95 101 104