Equivalent rates with continouous compounding


Problem:

Assume that the 6-month, 12-month, 18 month, and 24-month zero rates are 4%, 4.5%, 4.75%, and 5% with semiannual compounding.

Required:

Question: What are the equivalent rates with continouous compounding?

Note: Provide support for rationale.

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Accounting Basics: Equivalent rates with continouous compounding
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