Question: Suppose that the 6-month, 12-month, 18-month, and 24-month zero rates are 1.58 %, 1.88 %, 1.97 %, and 2.21 % respectively. What is the two-year par yield?
(Hint: Use the equation on p.89) Report your answer in percentage terms rounded to four decimal places. For example .123456 should be entered as 12.3456 without the percentage sign.