The function s ( t ) 0 17 0 03 e t 4 provides the term structure of effective annual rates of zero coupon bonds of maturity t , with t in 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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Question: The function s ( t ) = 0.17 0.03 e t / 4 provides the term structure of effective annual rates of zero coupon bonds

The function s(t) = 0.17 0.03e^t/4 provides the term structure of effective annual rates of zero coupon bonds of maturity t, with t in 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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