1. A bank quotes an interest rate of 14% per annum with quarterly compounding. What is the equivalent rate with (a) continuous compounding and (b) annual compounding?

2. What rate of interest with continuous compounding is equivalent to 15% per annum with monthly compounding?

3. A deposit account pays 12% per annum with continuous compounding, but interest is actually paid quarterly. How much interest will be paid each quarter on a $10,000 deposit?

4. An interest rate is quoted as 5% per annum with semiannual compounding. What is the equivalent rate with (a) annual compounding, (b) monthly compounding, and (c) continuous compounding.

5. The 6-month, 12-month. 18-month, and 24-month risk-free zero rates are 4%, 4.5%, 4.75%, and 5% with semiannual compounding.

1. a) What are the rates with continuous compounding?

2. b) What is the forward rate for the six-month period beginning in 18 months