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#6) Suppose that zero interest rates with continuous compounding are as follows: Maturity (months) Rate (% per annum) 3 8.0 6 8.2 9 8.4 12

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

Maturity (months)

Rate (% per annum)

3

8.0

6

8.2

9

8.4

12

8.5

15

8.6

18

8.7

Calculate forward interest rates from 6 to 9 months.

PLEASE SHOW ALL FORMULA & WORK & EXPLANATIONS -----All rates are per annum with continuous compounding unless otherwise stated

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