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The 6-month, 12-month. 18-month,and 24-month zero rates are 4%, 4.5%, 4.75%, and 5% with semiannual compounding. 1.What are the rates with continuous compounding? 2.What is

The 6-month, 12-month. 18-month,and 24-month zero rates are 4%, 4.5%, 4.75%, and 5% with semiannual compounding.

1.What are the rates with continuous compounding?

2.What is the forward rate for the six-month period beginning in 18 months

3.What is the value of an FRA that promises to pay you 6% (compounded semiannually) on a principal of $1 million for the six-month period starting in 18 months?

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