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Compute the 4-year zero yield

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Reference no: EM133117203

The 1-year zero yield is 4% p.a. The 12x48 forward rate is 8% p.a. These two rates are semi-annual compounding. Relying on the fact that the value of an FRA is zero at inception, compute the 4-year zero yield.

Please report per annum semi-annually compounding rates.

Reference no: EM133117203

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