Question: The six-month zero rate is 7% per annum with continuous compounding. The price of a one year bond that provides a coupon of 6% per

The six-month zero rate is 7% per annum with continuous compounding. The price of a one year bond that provides a coupon of 6% per annum semi-annually is 98. What is the 1 year continuously compounded zero rate.

A. 7%

B. 8%

C. 7.5%

D. 8.5%

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