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Question 7 (5 marks) a) The 10-year and 12-year zero-coupon rates are respectively, equal to 4% and 4.5%. Compute the 11 - and 11 %-year

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Question 7 (5 marks) a) The 10-year and 12-year zero-coupon rates are respectively, equal to 4% and 4.5%. Compute the 11 - and 11 %-year zero-coupon rates using the linear interpolation. b) Same question when you know the 10-year and 15-year zero-coupon rates, which are, respectively, equal to 8.6% and 9%

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