Calculate a annual coupon paying Bond into a zero coupon equivlent?

I need a little help with the following question.





following yield curve for bonds that pay annual coupons:


1 year 6.50%


2 year 7.25%


3 year 8.00%


4 year 9.50%


Given these rates, calculate the zero-coupon equivalent yield curve.








How would I go about finding an equivalent yeild curve?








ThanksCalculate a annual coupon paying Bond into a zero coupon equivlent?
I you invest $1 today at end of 4 years you will have $1.351





interest 0.065 0.0725 0.08 0.095


amount 1 1.065 1.1422 1.23 1.351





Now the task is to get zero-coupon yield(y) which is represented by





1(1+y)(1+y)^2*(1+y)^3*(1+y)^4





you can solve this to get the yield


y = 7.807 %