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Suppose that risk-free zero interest rates (zero with continuous compounding are as follows: MATURITY RATE (% PER ANNUM) 1 2.0 2 3.0 3 3.7 4

Suppose that risk-free zero interest rates (zero with continuous compounding are as follows:

MATURITY RATE (% PER ANNUM)
1 2.0
2 3.0
3 3.7
4 4.2

Calculate forward interest rates for the second, third, and fourth years. In other words, find 0(1, 2), 0(2, 3), and 0(3, 4).

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