FE$-620$ Pricing and Hedging

$8$ May $2024$

Problem $1(10$pt$).$

Assume that an interest rate is quoted as $5\mathrm{.}25\%$ with quarterly annual compoinding. What is the rate expressed with:

i$)$ annual compounding

ii$)$ semi$-$annual compounding

iii$)$ continuous compounding

Report the result as $x.yyy\%$ with $3$ decimal place digits.