Answer Happy

The price of a 6-month Treasury bill is 98.99. The price of a one-year bond that provides a coupon of 6% per annum semiannually is 102.90. The price of a 1.5 year bond that provides a coupon of 8% per annum semiannually is 106.18. Which of the following is correct? a. The 6 month, 1 year and 1.5 year zero rates are 1.50%, 3.03% and 3.73%, respectively. O b. The 6 month, 1 year and 1.5 year zero rates are 1.50%, 3.03% and 5.60%, respectively. O c. The 6 month, 1 year and 1.5 year zero rates are 2.03%, 3.03% and 3.73%, respectively.