Question: The 6-months zero rate is 8.60% per annum with continuous compounding. The price of a one-year bond that provides a coupon of 10% per annum

The 6-months zero rate is 8.60% per annum with continuous compounding. The price of a one-year bond that provides a coupon of 10% per annum semi-annually is 98. The par value of bond is 100.

What is the one-year zero rate measured in continuous compounding?

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