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The function s ( t ) = 0.13 0.05 e t / 4 provides the term structure of effective annual rates of zero coupon bonds
The function s(t) = 0.13 0.05et/4 provides the term structure of effective annual rates of zero coupon bonds of maturity t, with t in years. Find the following: |
(e) | The forward effective annual rate for a one day period, 3 years forward (the overnight rate). (Use 1/365 for a one-day period.) |
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