Question: We know that the 6 month zero bond price is $94.9; the 1 year coupon bond price is $90.0 with semi-annual coupon rate 4%; the

We know that the 6 month zero bond price is $94.9; the 1 year coupon bond price is $90.0 with semi-annual coupon rate 4%; the 1.5 year coupon bond price is $96.0 with semi-annual coupon rate 8%. Note that the face value of the bonds are $100. What is the annual 6 month zero rate? Please work on a continuous compounding base.

7.87%

14.65%

10.31%

8.60%

7.84%

10.57%

8.16%

14.39%

10.47%

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