Exercise 2. The 6-month, 12-month, 18-month, and 24-month zero rates are 4%, 4.5%, and 5%, with continuous compounding. (a) What are the rates with semi-annual compounding? (b) Consider a 2-year bond providing semiannual coupon of 10% per annum. Estim the price of this bond using the given zero rates. (c) Estimate the (continuous compounded) yield of this bond using the result in (c). Exercise 2. The 6-month, 12-month, 18-month, and 24-month zero rates are 4%, 4.5%, 4.75% and 5%, with continuous compounding. (a) What are the rates with semi-annual compounding? (b) Consider a 2-year bond providing semiannual coupon of 10% per annum. Estimate the price of this bond using the given zero rates. (c) Estimate the continuous compounded) yield of this bond using the result in (c). Exercise 2. The 6-month, 12-month, 18-month, and 24-month zero rates are 4%, 4.5%, and 5%, with continuous compounding. (a) What are the rates with semi-annual compounding? (b) Consider a 2-year bond providing semiannual coupon of 10% per annum. Estim the price of this bond using the given zero rates. (c) Estimate the (continuous compounded) yield of this bond using the result in (c). Exercise 2. The 6-month, 12-month, 18-month, and 24-month zero rates are 4%, 4.5%, 4.75% and 5%, with continuous compounding. (a) What are the rates with semi-annual compounding? (b) Consider a 2-year bond providing semiannual coupon of 10% per annum. Estimate the price of this bond using the given zero rates. (c) Estimate the continuous compounded) yield of this bond using the result in (c)