Forward rate that starts in year one and is valid

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Q.1) If the one year continuously compounded interest rate is 4% and the two year rate is 3.5%, what is the forward rate that starts in year one and is valid for one year?

Q.2) Assume that the interest rates for year one, two and three are 3%, 3.5%, and 4.5%, what is the price of a three year coupon bond that has a face value of 100 and pays yearly coupon of 5 dollars?

Q.3) If the one-year simple interest rate is 3.5%, what is the corresponding continuously compounded rate ?

Q.4) If the two year nominal continuously compounded interest rate is 3%, the price of a two year zero coupon bond with a face value of 100 is:

Q.5) If the price of a 18 month zero coupon bond is 97, what is the annual continuously compounded interest rate for a maturity of 18 months is:

Reference no: EM131639908

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