The one-year continuously-compounded zero rate is 3.5% per annum. The two-year zero rate is 5% per annum. What is the forward rate for the second year?

4.25% per annum.

6.5% per annum.

7.5% per annum.

8.5% per annum.

If the continuously compounded interest rate is 12% per annum, what is the price of a two-year zero-coupon treasury bill with a face value of $100?

$76.0

$78.66

79.72

$80.64

The price of a two-year zero coupon bond with a face value of $1000 is trading at a price of $935. What is the annualized continuously-compounded yield of this bond?

3.36%

3.42%

6.72%

6.95%