Forward rate for the six-month period
The 6-month, 12-month, 18-month, and 24-month zero rates are 4%, 4.5%, 4.75%, and 5% with semi-annual compounding.
Q1: What are the rates with continuous compounding?
Q2: What is the forward rate for the six-month period beginning in 18 months?
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What are the rates with continuous compounding? What is the forward rate for the six-month period beginning in 18 months?
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