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QUESTION 6 Suppose that zero interest rates with continuous compounding are as follows: Maturity (months) Rate(% per annum) 3 6.0 6 6.1 9 6.3 12

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QUESTION 6 Suppose that zero interest rates with continuous compounding are as follows: Maturity (months) Rate(% per annum) 3 6.0 6 6.1 9 6.3 12 6.4 15 6.5 18 6.6 Calculate forward interest rates for enter the answer in percentage rounded to two decimals places): The second quarter: % The third quarter: % The fourth quarter: %

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