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(Solved): The 6-month, 12-month. 18-month, and 24-month risk-free zero rates are 4.1%, 4.25%, 4.715%, and 5.05 ...



The 6-month, 12-month. 18-month, and 24-month risk-free zero rates are 4.1%, 4.25%, 4.715%, and 5.05% with semiannual compounding. a. What are the rates with continuous compounding? b. What is the forward rate for the six-month period beginning in 18 months? c. What is the two-year par yield?



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Solution :-a. To calculate the rates with continuous compounding, we can use the formula:r_cont
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