Question: The six-month zero rate is 8% per annum with continuous compounding. The price of a one-year bond that provides a coupon of 6% per annum

The six-month zero rate is 8% per annum with continuous compounding.

The six-month zero rate is 8% per annum with continuous compounding. The price of a one-year bond that provides a coupon of 6% per annum semi-annually is 96% of its face value. Which of the following is the closest to the one-year continuously compounded zero rate? Select one alternative 11.09% 12.13% 10.09% 16.10%

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