Question: Problem #5: The function s(t) = 0.14 - 0.04 e - 1/4 provides the term structure of effective annual rates of zero coupon bonds of

Problem #5: The function s(t) = 0.14 - 0.04 e -

Problem #5: The function s(t) = 0.14 - 0.04 e - 1/4 provides the term structure of effective annual rates of zero coupon bonds of maturity t, 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. (e) 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.) Problem #5(a): Answer as a percentage, correct to 2 decimals. Problem #5(b): Answer as a percentage, correct to 2 decimals. Problem #5(c): Answer as a percentage, correct to 2 decimals. Problem #5(d): Answer as a percentage, correct to 2 decimals. Problem #5(e): Answer as a percentage, correct to 2 decimals. Just Save Submit Problem #5 for Grading Attempt #3 5(a) 5(b) 5(0) Problem #5 Attempt #1 Your Answer: 5(a) 5(b) 5(c) 5(d) 5(e) Your Mark: 5(a) 5(b) 5(0) 5(d) 5(d) Attempt #2 5(a) 5(b) 5(0) 5(d) 5(e) 5(a) 5(b) 5(0) 5(d) 5(e) 5(e) 5(a) 5(b) 5(C) 5(d) Attempt #4 5(a) 5(b) 5(c) 5(d) 5(e) 5(a) 5(b) 5(0) 5(d) 5(e) Attempt #5 5(a) 5(b) 5(0) 5(d) 5(e) 5(a) 5(b) 5(0) 5(d) 5(e) 5(e) 5(e) Problem #5: The function s(t) = 0.14 - 0.04 e - 1/4 provides the term structure of effective annual rates of zero coupon bonds of maturity t, 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. (e) 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.) Problem #5(a): Answer as a percentage, correct to 2 decimals. Problem #5(b): Answer as a percentage, correct to 2 decimals. Problem #5(c): Answer as a percentage, correct to 2 decimals. Problem #5(d): Answer as a percentage, correct to 2 decimals. Problem #5(e): Answer as a percentage, correct to 2 decimals. Just Save Submit Problem #5 for Grading Attempt #3 5(a) 5(b) 5(0) Problem #5 Attempt #1 Your Answer: 5(a) 5(b) 5(c) 5(d) 5(e) Your Mark: 5(a) 5(b) 5(0) 5(d) 5(d) Attempt #2 5(a) 5(b) 5(0) 5(d) 5(e) 5(a) 5(b) 5(0) 5(d) 5(e) 5(e) 5(a) 5(b) 5(C) 5(d) Attempt #4 5(a) 5(b) 5(c) 5(d) 5(e) 5(a) 5(b) 5(0) 5(d) 5(e) Attempt #5 5(a) 5(b) 5(0) 5(d) 5(e) 5(a) 5(b) 5(0) 5(d) 5(e) 5(e) 5(e)

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