Based on forward rates of interest

SECTION 6.3 6.3.1 (a) Find an expression for i,(k 1,k) in terms of the so(t) 's. (b) Show that (1+i,(0,1))(1+i(1,2))... (1+i(k1,k) = (1+(k))* for k=1,2,...,n. (c) Show that d d k (d) Show that if so(k) > So(k 1), then i,(k 1,k) > so(k). ds.(x){0 (k 1,k)>0 and SECTION 6.3 6.3.1 (a) Find an expression for i,(k 1,k) in terms of the so(t) 's. (b) Show that (1+i,(0,1))(1+i(1,2))... (1+i(k1,k) = (1+(k))* for k=1,2,...,n. (c) Show that d d k (d) Show that if so(k) > So(k 1), then i,(k 1,k) > so(k). ds.(x){0 (k 1,k)>0 and