4.11 The Bootstrap Method (continued To calculate the 1.5 year rate we solve 4e0105+4e0104×10+104ek×15=96 to get R=0.1068or10.68% Similarly the two-year rate is 10.81% (see the equation on page 91) Options, Futures, and Other Derivatives, 4th edition@ 2000 by John C. Hull Tang Yincai, C 2003, Shanghai Normal University4.11 Options, Futures, and Other Derivatives, 4th edition © 2000 by John C. Hull Tang Yincai, © 2003, Shanghai Normal University The Bootstrap Method （continued） • To calculate the 1.5 year rate we solve to get R = 0.1068 or 10.68% • Similarly the two-year rate is 10.81% （see the equation on page 91） 4 4 104 96 0 1047 0 5 0 1054 1 0 1 5 e e e −  −  −R + + = . . . .