Question: 4 . ( 3 points ) Continuously compounded forward rates f ( 0 , 1 , 2 ) and f ( 0 , 2 ,

4.(3 points) Continuously compounded forward rates f(0,1,2) and f(0,2,3) are at 1% an 1.5%, respectively. The rate f(0,1,3) then equals to...
A.1%
B.1.25%
C.1.5%
D.2.5%
E. None of A to D is correct

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