Question: 4.23. Suppose that risk-free zero interest rates with continuous compounding are as follows: Maturity Rate (years) (% per annum) Calculate forward interest rates for the

4.23. Suppose that risk-free zero interest rates with continuous compounding are as4.23. Suppose that risk-free zero interest rates with continuous compounding are as follows:

Maturity Rate (years) (% per annum) Calculate forward interest rates for the second, third, fourth, and fifth years.

Maturity (years) 1 2 3 4 5 UAWN Rate (% per annum) 2.0 3.0 3.7 4.2 4.5

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