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The 6, 12, 18, & 24 month risk-free zero rates are 4%, 4.5%, 4.75%, & 5% with semiannual compounding. (a) what are the rates with
The 6, 12, 18, & 24 month risk-free zero rates are 4%, 4.5%, 4.75%, & 5% with semiannual compounding.
(a) what are the rates with continuous compounding?
(b) what is the forward rate for the six-month period beginning in 18 months?
(C) what is the two year par yield?
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