The 6-month zero rate is 6 with semiannual compounding the


The 6-month zero rate is 6% with semiannual compounding. The price of a 1-year bond that provides a coupon of 10% per annum semiannually is 96. What is the 1-year continously compounded zero rate?

a. 14.15%

b. 14.00%

c. 13.80%

d. 14.25%

e. 15.00%

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Financial Management: The 6-month zero rate is 6 with semiannual compounding the
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