Question: Based on the continuously compounded annual spot interest rates shown below, what is the par yield for an 18-month bond that pays interest semiannually? Month

Based on the continuously compounded annual spot interest rates shown below, what is the par yield for an 18-month bond that pays interest semiannually?

Month 6 Spot Rate 3%

Month 12 Spot Rate 4%

Month 18 Spot Rate 5%

Month 24 Spot rate 6%

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