Question: Suppose that the continuously compounded zero rates are listed in the table below: Maturity (Months) Zero Rate (%) 6 2.2 12 2.8 18 3.4 24

Suppose that the continuously compounded zero rates are listed in the table below: Maturity (Months) Zero Rate (%) 6 2.2 12 2.8 18 3.4 24 3.8 30 4.3 Estimate the price of a bond with a face value of $100 that will mature in 30 months and pays a coupon of 6% per annum semiannually. (Required precision: 0.01 +/- 0.01)

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