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The five-year zero rate is 8.8% and the four-year zero rate is 8.5%. What is the forward rate for the fifth year? All rates are

The five-year zero rate is 8.8% and the four-year zero rate is 8.5%. What is the forward rate for the fifth year? All rates are continuously compounded.

Question 6 options:

a)

10%

b)

9%

c)

8%

d)

9.5%

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