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  3. problem #5: the function s(t) = 0.13 0.06et/4

Problem #5: The function s(t) = 0.13 0.06et/4 provides the...

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Accounting

Problem #5:
The function s(t) = 0.13 0.06et/4 provides the term structure of effective annual rates of zero coupon bonds of maturity t, with t in years. Find the following:
(a) The effective annual rate of a 3 year zero coupon bond.
(b) The 2-year forward effective annual rate for a one year period.
(c) The forward effective annual rate for a one year period, 3 years forward.
(d) The 3-year forward effective annual rate for a 3 month period.
(e) The forward effective annual rate for a one day period, 3 years forward (the overnight rate). (Use 1/365 for a one-day period.)

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