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The 6-month, 12-month, and 18-month zero rates are 2%, 2.5%, and 3% with semiannual compounding. a) What are the rates with continuous compounding? b) What

The 6-month, 12-month, and 18-month zero rates are 2%, 2.5%, and 3% with semiannual compounding. a) What are the rates with continuous compounding? b) What is the forward rate for the six-month period beginning in 6 months? c) What is the value of anFRAthat promises to pay you 3.55% (compounded annually) on a principal of $1 million for the six-month period starting in 12 months?

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