Question: Problem #5: The function (1) = 0.16 -0.036-1/4 provides the term structure of effective annual rates of zero coupon bonds of maturity 1, with t

Problem #5: The function (1) = 0.16 -0.036-1/4 provides the term

Problem #5: The function (1) = 0.16 -0.036-1/4 provides the term structure of effective annual rates of zero coupon bonds of maturity 1, with t in years. Find the following: (a) The effective annual rate of a 3 year zero coupon bond. (b) The 2-year forward effective annual rate for a one year period. (c) The forward effective annual rate for a one year period, 3 years forward. (d) The 3-year forward effective annual rate for a 3 month period. (e) The forward effective annual rate for a one day period. 3 years forward (the "overnight" rate). (Use 1/365 for a one-day period.) (A) 15.46 (B) 13.71 (C) 14.58 (D) 14.15 (E) 15.02 Problem #5(a): Select t Part (a) choices. Answer as a percentage. (A) 14.01 (B) 14.47 (C) 14.93 (D) 15.39 (E) 13.55 Problem #5(b): Select 1 Part (b) choices. Answer as a percentage. (A) 15.37 (B) 17.27 (C) 16.79 (D) 15.84 (E) 16.32 Problem #5(c): Select 1 Part (c) choices. Answer as a percentage. (A) 15.23 (B) 16.65 (C) 15.70 (D) 14.76 (E) 16.18 Problem #5(d): Select t Part (d) choices. Answer as a percentage. (A) 15.18 (B) 16.59 (C) 15.65 (D) 16.12 (E) 17.06 Part le choices

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