Question: The function s(t) = 0.1 -0.03 et/4 provides the term structure of effective annual rates of zero coupon bonds of maturity t, with t in

The function s(t) = 0.1 -0.03 et/4 provides the term structure

The function s(t) = 0.1 -0.03 et/4 provides the term structure of effective annual rates of zero coupon bonds of maturity t, with t in years. Find the following: (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.) The function s(t) = 0.1 -0.03 et/4 provides the term structure of effective annual rates of zero coupon bonds of maturity t, with t in years. Find the following: (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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