Calculate the value of a 2-year bond with a face value of


The zero rates are given in the following table. Please calculate the value of a 2-year bond with a face value of $100 and 8% annual coupon rate (coupons are paid semiannually).

Maturity (years)          Zero rate (continuous compounding)

0.5                               3%

1.0                               3.25%

1.5                               3.50%

2.0                               4.0%

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Financial Management: Calculate the value of a 2-year bond with a face value of
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