Question 1: An interest rate is quoted as 6% per annnum with semiannual compounding, what is the equivalent rate with (a) annual compounding, (b) monthly compounding and (c) continous compounding? Question 2: Suppose that the riskfree zero interest rate with continous compounding are as follows. Calculate the fonNard interest rates for the second, third and fourth years Maturity (years) Rate(% per annum) 1 2.0 2 3.0 3 3.6 4 4.2 5 4.5