Question: Suppose that zero interest rates with continuous compounding are as follows, please compute forward rate for n-th year Maturity (years) Rate (% ) Forward rate

  1. Suppose that zero interest rates with continuous compounding are as follows, please compute forward rate for n-th year

Maturity (years)

Rate (% )

Forward rate for n-th year

1

2.0

2

3.0

3

3.7

4

4.2

5

4.5

Answers:

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