What is the implied rate on a zero coupon bond

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Suppose 6-month LIBOR is 3% per year (continuously compounded) and a 1-year 5% coupon bond has a YTM (semi-annual compounding) of 4% per year. What is the implied rate on a zero coupon bond with 1-year to maturity (express in continuous compounding).

Reference no: EM132788102

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