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Question 10: Suppose that the risk-free zero interest rate with continous compounding are as follows. Calculate the forward interest rates for the second, third and

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Question 10: Suppose that the risk-free zero interest rate with continous compounding are as follows. Calculate the forward interest rates for the second, third and fourth years Maturity (years) Zero Rate(% per annum) Forward Rate 1 2.0 2 3.1 (a) 3 4.0 (b) 4 4.4 (c)

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