Explain one-year continuously compounded zero rate

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The six-month zero rate is 6% per annum with semiannual compounding. The price of a one-year bond that provides a coupon of 4% per annum semiannually is 96. What is the one-year continuously compounded zero rate? Please enter your answer as a number with two decimal places (e.g. enter 6.50 for 6.50%).

Reference no: EM133122048

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