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(13) The instantaneous rate curve r(t) is given by r(t)=1+2exp((1+t)2)0.05. Assume that interest is compounded continuously. (i) Compute the 6 months, 1 year, and 18

image text in transcribed (13) The instantaneous rate curve r(t) is given by r(t)=1+2exp((1+t)2)0.05. Assume that interest is compounded continuously. (i) Compute the 6 months, 1 year, and 18 months discount factors with six decimal digits accuracy, and compute the 2 year discount factor with eight decimal digits accuracy, using Simpson's Rule; recall that the discount factor corresponding to time t is exp(0tr()d). (ii) Find the price of a two year semiannual coupon bond with coupon rate 5% (and face value 100)

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