The three-year zero rate is 7% per annum and the four-year zero rate is 8% per annum

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The three-year zero rate is 7% per annum and the four-year zero rate is 8% per annum (both continuously compounded). What is the forward rate for the fourth year with continuous compounding?

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Options Futures and Other Derivatives

ISBN: 978-0134472089

10th edition

Authors: John C. Hull

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Posted Date: Feb 27, 2024 08:50 AM

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The three-year zero rate is 7% per annum and the four-year zero rate is 8% per annum

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where F To find the forward rate for With Continuous Compoundive we can formula for Calculating ... View the full answer

Options Futures and Other Derivatives

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