Question: (20 points) As seen at time To (today), the forward annual discount factors (trivially including P(To, T1)) are known to be P(T., T1) = 0.950,

(20 points) As seen at time To (today), the forward annual

(20 points) As seen at time To (today), the forward annual discount factors (trivially including P(To, T1)) are known to be P(T., T1) = 0.950, P(T1,72) = 0.940, P (T2,73) = 0.932, P(T3,T4) = 0.925, P(T4,T3) = 0.919, P(T5, T6) = 0.913 a. Calculate the spot discount factors P(T,,T2), P (To, T3), P(T,,T4), P(T., T3), P(T,,T) b. Calculate the continuous forward interest rates as seen at time To

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