Using the bootstrapping method

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Reference no: EM132063363

Four bounds with 6, 12, 18, and 24 months of maturity and $10,000 face value are selling for $9,400, $8,900, $9,484, and $9,625 respectively. The first two are discount bonds, the third one pays 8% and the last one pays 9% /year coupon semi-annually. Using the bootstrapping method, calculate the 6, 12, 18, and 24 month zero rates.

Reference no: EM132063363

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