Explain your choice:

a) 0.9622

b) 0.9592

c) 0.9585

d) None of these answrs

The 6 month tenor IRS is very popular due to its high liquidity and is often used to bootstrap a term structure of interest rates. On your data provider's display you have a list of swap rates for 6 month tenor IRSs which have been written now. The first reset date of all those IRS is today. The short term annualized 2-compounded rate corresponding to 6 months is r2(0,6M) = 1.67 The following table contains the annualized swap rates for horizons up to 4 years T 1 1.5 2 2.5 3 3.5 4. (0,T) 2.02% 2.83% 3.01% 3.22% 3.431% 3.65% 3.77% The discount factor for 18 months from now, Z(0,1.5) takes the following value with up to 4 decimals: The 6 month tenor IRS is very popular due to its high liquidity and is often used to bootstrap a term structure of interest rates. On your data provider's display you have a list of swap rates for 6 month tenor IRSs which have been written now. The first reset date of all those IRS is today. The short term annualized 2-compounded rate corresponding to 6 months is r2(0,6M) = 1.67 The following table contains the annualized swap rates for horizons up to 4 years T 1 1.5 2 2.5 3 3.5 4. (0,T) 2.02% 2.83% 3.01% 3.22% 3.431% 3.65% 3.77% The discount factor for 18 months from now, Z(0,1.5) takes the following value with up to 4 decimals