The 6-month, 12-month, 18-month, and 24-month zero rates are 2%, 1.5%,1.75%, and 2% with semiannual compounding. What are the rates with continuous compounding? What is the forward rate for the 6-month period beginning in 18 months for both continuous and semiannual compounding. What is the value of an FRA that promises to pay you 2.6% (compounded semiannually) on a principal of $1 million for the 6-month period starting in 18 months?

The 6-month, 12-month, 18-month, and 24-month zero rates are 2%, 1.5%, 1.75%, and 2% with semiannual compounding. What are the rates with continuous compounding? What is the forward rate for the...

The 6-month, 12-month, 18-month, and 24-month zero rates are 2%, 1.5%,
1.75%, and 2% with semiannual compounding.

What is the forward rate for the 6-month period beginning in 18 months for both
continuous and semiannual compounding.

What is the value of an FRA that promises to pay you 2.6% (compounded semiannually) on a principal of $1 million for the 6-month period starting in 18 months?

Jun 08, 2022