Question

From the following information compute the zero-rate for 1.5-years.
Coupon semi-annually
0
Face value
$100
$100
$100
Current price
$94
$89
$94.84
0
Years to maturity
0.5
1.0
1.5
$4
(A) 11.50%
(B) 12.38%
(C) 11.65%

(D) Ed%​

Answer 1

Answer:

(A) 11.50% is the answer