Question: The function s ( t ) = 0.12 0.06 e t / 4provides the term structure of effective annual rates of zero coupon bonds of

The functions(t) = 0.12 0.06et/4provides the term structure of effective annual rates of zero coupon bonds of maturityt, withtin years. Find the following:

(a)The 3-year forward effective annual rate for a 3 month period.

(b)The forward effective annual rate for a one day period, 3 years forward (the "overnight" rate).

(Use 1/365 for a one-day period.)

I got 2.74% for the question (a) and 0.03% for (b) but not correct.

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