Suppose that risk-free zero interest rates with continuous' compounding are as follows: (Note that these rates...
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Suppose that risk-free zero interest rates with continuous' compounding are as follows: (Note that these rates are all for time periods which begin at time zero and run "x" years into the future.) Maturity (Years) Rate (% per annum) 1.26 1.35 1.89 2.2 2.93 12345 Zero Rates Calculate the two-year forward rate for the third and fourth year. That is, at t=2, what will be the two-year rate? Report your answer in percentage terms rounded to two decimal places without the % sign. Answer: Check Suppose that risk-free zero interest rates with continuous' compounding are as follows: (Note that these rates are all for time periods which begin at time zero and run "x" years into the future.) Maturity (Years) Rate (% per annum) 1.26 1.35 1.89 2.2 2.93 12345 Zero Rates Calculate the two-year forward rate for the third and fourth year. That is, at t=2, what will be the two-year rate? Report your answer in percentage terms rounded to two decimal places without the % sign. Answer: Check
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