Suppose that zero interest rates with continuous compounding are as follows: Maturity (years) Rate (% per annum)

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Suppose that zero interest rates with continuous compounding are as follows:

Maturity (years) Rate (% per annum) 1 2.0 2 3.0 3 3.7 4.2 4.5 4 5 Calculate forward interest rates for the second, third, fourth, and fifth years.AppendixLO1

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