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Suppose that zero interest rates with continuous compounding are as follows: Maturity( years) Rate (% per annum) 1 4.0 2 4.3 3 4.5 4 4.7 5 5.0 Calculate forward...

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Finance

Suppose that zero interest rates with continuous compoundingare as follows:

Maturity( years)

Rate (% per annum)

1

4.0

2

4.3

3

4.5

4

4.7

5

5.0

Calculate forward interest rates for the second,third, fourth, and fifth years.

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