Let the noncompounding (simple) 3-month and 6-month interest rates be (2 %) and (3 %), respectively. (a)
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Let the noncompounding (simple) 3-month and 6-month interest rates be \(2 \%\) and \(3 \%\), respectively.
(a) What is the \([3 \mathrm{~m}, 6 \mathrm{~m}]\) noncompounding forward rate?
(b) What is the \([3 \mathrm{~m}, 6 \mathrm{~m}]\) continuously compounding forward rate?
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Related Book For
Mathematical Techniques In Finance An Introduction Wiley Finance
ISBN: 9781119838401
1st Edition
Authors: Amir Sadr
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