Question: If the 3-year zero rate is 5% and 4-year zero rate is 6%, what is the forward rate for the 4th year? (All interest rates
If the 3-year zero rate is 5% and 4-year zero rate is 6%, what is the forward rate for the 4th year? (All interest rates are quoted as per annum with continuous compounding)
| A. | 8% | |
| B. | 7% | |
| C. | 9% | |
| D. | 6% |
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