Question: The current spot interest rates with continuous compounding are as follows: Quarter 1 2 3 4 5 6 Maturity (months) Rate (% per annum) 3

The current spot interest rates with continuous compounding are as follows:

The current spot interest rates with continuous compounding are as follows: Quarter 1 2 3 4 5 6 Maturity (months) Rate (% per annum) 3 8.0 6 8.2 9 8.4 12 8.5 15 8.6 18 8.7 Find the corresponding continuously compounded annual forward rates for the quarters 2 - 6. The current spot interest rates with continuous compounding are as follows: Quarter 1 2 3 4 5 6 Maturity (months) Rate (% per annum) 3 8.0 6 8.2 9 8.4 12 8.5 15 8.6 18 8.7 Find the corresponding continuously compounded annual forward rates for the quarters 2 - 6

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