Assume that the following bond yields, compounded semiannually:
6-month Treasury Strip: 5.00%;
1-year Treasury Strip: 5.25%;
18-month Treasury Strip: 5.75%.
a. What is the 6-month forward rate in six months?
b. What is the 1-year forward rate in six months?
c. What is the price of a semiannual 10% coupon Treasury bond that matures in exactly 18 months?