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Problem 4.32.The 6-month, 12-month. 18-month, and 24-month zero rates are 4%, 4.5%, 4.75%, and 5% with semiannual compounding.a) What are the rates with continuous compounding?b)

Problem 4.32.The 6-month, 12-month. 18-month, and 24-month zero rates are 4%, 4.5%, 4.75%, and 5% with semiannual compounding.a) What are the rates with continuous compounding?b) What is the forward rate for the six-month period beginning in 18 months?c) What is the value of an FRA that promises to pay you 6% (compounded semiannually)on a principal of $1 million for the six-month period starting in 18 months?

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