Question: The function s ( t ) = 0.13 0.05 e t / 4provides the term structure of effective annual rates of zero coupon bonds of

The functions(t) = 0.13 0.05et/4provides the term structure of effective annual rates of zero coupon bonds of maturityt, withtin years. Find the following:

(a)The effective annual rate of a 3 year zero coupon bond.(b)The 2-year forward effective annual rate for a one year period.(c)The forward effective annual rate for a one year period, 3 years forward.(d)The 3-year forward effective annual rate for a 3 month period.(e)The forward effective annual rate for a one day period, 3 years forward (the "overnight" rate).

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

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