Question: Question 4 [15 Marks) The table below presents historical risk free zero-coupon rates (annualised) for different maturities at semi-annual intervals from 31 December 2017 to

Question 4 [15 Marks) The table below presents historical risk free

Question 4 [15 Marks) The table below presents historical risk free zero-coupon rates (annualised) for different maturities at semi-annual intervals from 31 December 2017 to 30 June 2019 (inclusive). Risk free zero-coupon rates Maturity (years) 31-Dec-17 0.5 1.00% 30-Jun-18 31-Dec-18 30-Jun-19 0.80% 0.70% 0.40% 1.0 1.50% 1.20% 1.10% 0.60% 1.5 1.80% 1.80% 1.30% 0.90% 2.0 2.00% 2.10% 1.60% 1.10% 2.5 2.20% 2.20% 1.90% 1.40% 3.0 2.20% 2.30% 2.00% 1.60% a) As of 30 June 2019, calculate the semi-annual forward rate that applies from 31 December 2020 to 30 June 2022. [3 Marks]

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