In: Finance
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 interest rates for the second,
third, fourth, and fifth years.