Question: The LIBOR curve is flat at 4% (with continuous compounding) out to 2 years. Swap lates for 2.5 and 3 year semi-annual pay swaps are

The LIBOR curve is flat at 4% (with continuous compounding) out

The LIBOR curve is flat at 4% (with continuous compounding) out to 2 years. Swap lates for 2.5 and 3 year semi-annual pay swaps are 4.2% and 4.4% respectively. Estimate the LIBOR zero rates for maturities of 2.5 and 3 years. Use LIBOR discounting to arrive at your answer The LIBOR curve is flat at 4% (with continuous compounding) out to 2 years. Swap lates for 2.5 and 3 year semi-annual pay swaps are 4.2% and 4.4% respectively. Estimate the LIBOR zero rates for maturities of 2.5 and 3 years. Use LIBOR discounting to arrive at your

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