Question 2 (Total 15 marks) a) What is the future value three years from now of $1,000 invested in an account which pays 9% APR with monthly compounding, or 9% APR with continuous compounding. b) What is the APR with continuous compounding that is equivalent to 12% APR with quarterly compounding c) What is the APR with semiannual compounding that is equivalent to 10% APR with continuous compounding d) If the current 1-year zero rate is 4.2% and 2-year zero rate is 5.4%, what should be the forward interest rate for Year 2. Describe how you can lock in to earn this forward rate for year 2 (not by using a forward contract)