Problem B. The current price of a 6-month zero coupon bond with a face value of $100 is B1. If a 9-month strip with a face value of $100 is currently trading for B2, find the forward interest rate for the 6 to 9 month period. Solve by both continuous compounding and quarterly compounding. Write your answers for the following:

10. Six-month spot interest rate for quarterly compounding.

11. Nine-month spot interest rate for quarterly compounding.

12. Forward rate (6 to 9 months) for quarterly compounding.

13. Six-month spot interest rate for continuous compounding.

14. Nine-month spot interest rate for continuous compounding.

15. Forward rate (6 to 9 months) for continuous compounding.

16. What is the guaranteed fair price of a 3-month T-Bill to be delivered at 6 months from now, assuming quarterly compounding?

17.What is the guaranteed fair price of a 3-month T-Bill to be delivered at 6 months from now, assume continuous compounding?

B1	B2
97.38	96.38