Question: An interest rate is 5% per annum with continuous compounding. What is the equivalent rate with semiannual compounding? A. 5.06% B. 5.03% C. 4.97% D.

An interest rate is 5% per annum with continuous compounding. What

An interest rate is 5% per annum with continuous compounding. What is the equivalent rate with semiannual compounding? A. 5.06% B. 5.03% C. 4.97% D. 4.94% QUESTION 5 The two-year zero rate is 6% and the three-year zero rate is 6.5%. What is the forward rate for the third year? All rates are continuously compounded. A. 6.75% B. 7.00% C. 7.25% D. 7.50%

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