Question: Consider a zero - coupon bond due in exactly six months with a face value of 1 0 0 and currently selling for 9 8

Consider a zero-coupon bond due in exactly six months with a face value of 100 and currently selling for 98. Assume you buy now and hold the investment to maturity.
1. What is the simple quarterly compounded rate of interest per annum on this investment?
2. What is the continuously compounded rate of interest on this investment?
3. What is the EAR on this investment?

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