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The 6-month, 12-month. 18-month, and 24-month zero rates are 3%, 3.5%, 3.9%, and 4.1% with semi-annual compounding. a)What are the rates with continuous compounding? b)What
The 6-month, 12-month. 18-month, and 24-month zero rates are 3%, 3.5%, 3.9%, and 4.1% with semi-annual compounding.
a)What are the rates with continuous compounding?
b)What is the forward rate for the six-month period beginning in 18months with continuous compounding?
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