Question: 6) Suppose that zero interest rates with continuous compounding are as follows: Maturity (months) Rate (% per annum) 3 8.0 6 8.2 9 8.4 12

6) Suppose that zero interest rates with continuous compounding are as follows:

Maturity (months) Rate (% per annum)

3 8.0

6 8.2

9 8.4

12 8.5

15 8.6

18 8.7

What is the annualized forward interest rate from 6 to 9 months?

A) 2.2%

B) 5.5%

C) 8.5%

D) 8.8%

E) 9.5%

Show formula and work please.

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