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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
What is the annualized forward interest rate from 6 to 9 months?
A) 2.2%
B) 5.5%
C) 8.5%
D) 8.8%
E) 9.5%
Show formula and work please.
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