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Suppose that the 3 month and 6 month continuously compounded LIBOR rates are 3% and 3.5% respectively. Assume that LIBOR is used as the risk-free

Suppose that the 3 month and 6 month continuously compounded LIBOR rates are 3% and 3.5% respectively. Assume that LIBOR is used as the risk-free discount rate.

a)What is the forward LIBOR rate for the period between 3 months and 6 months on a continuously compounded basis?

b)What is the equivalent forward LIBOR rate on a quarterly compounded basis?

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