c) What is the six-month forward rate starting in the sixth rear? PART B (Due on the week of 13 October) Problem 7 Consider the following set of interest rates on zero-coupon bonds_ Time (years) Zero rate a 1 6.0 -1 6.1 3 6.2 4 6.3 (a) How many forward rates are associated with these zero rates% (b) Calculate the forward rates and discount factors. (c) What is the relation between the zero rate curve and the forward rate curve% c) What is the six-month forward rate starting in the sixth rear? PART B (Due on the week of 13 October) Problem 7 Consider the following set of interest rates on zero-coupon bonds_ Time (years) Zero rate a 1 6.0 -1 6.1 3 6.2 4 6.3 (a) How many forward rates are associated with these zero rates% (b) Calculate the forward rates and discount factors. (c) What is the relation between the zero rate curve and the forward rate curve%