Question: Use the following continuously compounded zero rates and forward rates for Problems 8-9: 1 year zero rate is 3.50% 2 year zero rate is 4.20

Use the following continuously compounded zero rates and forward rates for

Use the following continuously compounded zero rates and forward rates for Problems 8-9: 1 year zero rate is 3.50% 2 year zero rate is 4.20 % 3 year zero rate is 4.80% 5 year zero rate is 5.50% or oS or 0s2 or 0S3 5th year forward rate 6.70% or 4s 8. The forward rate for the 2nd year (iF2) is closest to: A. 4.50% C. 4.90% E. 6.01% 9.If you invested $10,000 today, how much would you have at the end of four years? HINT: Find the 4.60% 6.00% four year zero rate (oS4). Do not round intermediate steps A. $12,117 B.$12,248 C. $12,288 D. $12,312 E. $12,339

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