The cash prices of six-month and one-year treasury bills

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The cash prices of six-month and one-year Treasury bills are 94.0 and 89.0 (view the T-bill as zero-coupon bond). A 1.5-year bond that will pay coupons of $4 every six months currently sells for $94.84. A two-year bond that will pay coupons of $5 every six months currently sells for $97.12. Calculate the six-month, one-year, 1.5-year, and two-year zero rates.

Reference no: EM131962592

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