One-year continuously compounded zero rates, Finance Basics

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One-year continuously compounded zero rates

Problem:

The six-month zero rate is 8% per annum with semi-annual compounding. The price of a one-year bond that provides a coupon of 6% per annum semiannually is 95.

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Question: What is the one-year continuously compounded zero rates? Please describe in detail and provide step by step solution.

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Finance Basics: One-year continuously compounded zero rates

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Finance Basics: One-year continuously compounded zero rates

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