Question: What is the .5 year zero rate (also known as spot rate) give that the information for the following .5 year, 1 year, and 1.5

 What is the .5 year zero rate (also known as "spot

What is the .5 year zero rate (also known as "spot rate") give that the information for the following .5 year, 1 year, and 1.5 year bonds: NOTE: The .5&1 year bonds are zero-coupon. The 1.5 year bond has a $5.00 coupon which is paid semi-annually (in 2 increments of $2.50, each six-months apart). HINT: You must solve recursively as shown in the lecture (first, you have to solve for the .5 year zero rate, then the 1 year zero rate, then the 1.5 year zero rate) .980% .991% 1.001% 1.003% 1.005%

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