The discount curve in quarterly intervals out to 12 months


Given the following data, the discount curve in quarterly intervals out to 12 months is

a zero coupon bond with maturity 6 months from now with price 99.20

a coupon bond paying 3 % quarterly with maturity 3 months from now with price 100.5485

a coupon bond paying 6% quarterly with maturity 9 months from now with price 100.1655

a coupon bond paying 5% semiannually with maturity in 12 months from now with price 103.0325

Below are the answer choices, also please show how to do this

A) 3 months= .9980 (6 month)= .9920 (9 month)=.9870 (12 month)=.9810

B) .0020 .0080 .0130 .0190

C) .4990 .04960 .4935 .4905

D) .9980 .9920 .9870 .9810

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Financial Management: The discount curve in quarterly intervals out to 12 months
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