Question: Year (n) 1 2 3 4 5 Zero rate 3.0% 4.0% 4.6% 5.0% 5.3% The above table lists current zero rates for periods of time

Year (n) 1 2 3 4 5 Zero rate 3.0% 4.0%

Year (n) 1 2 3 4 5 Zero rate 3.0% 4.0% 4.6% 5.0% 5.3% The above table lists current zero rates for periods of time in the future, continuously compounded. Wherever applicable, use e = 2.71828. a. What is the one-year forward rate, one year from now? b. What is the one-year forward rate, two years from now

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