03. Compounding Frequencies For an interest rate compounded annually of 7%, what are the equivalent interest rates compounded: (a) Semi-annually (1 point) (b) Quarterly (1 point) (c) Daily (1 point) (d) Continuously (1 point) (e) What do you conclude from comparing (c) and (d)? (1 point) Question #6 (10 points) The spot price of an investment asset is $40 and the risk-free rate for all maturities is 10% with continuous compounding. The asset provides an income of $3 at the end of the first year and at the end of the second year. What is the three-year forward price?e