Explore BrainMass
Share

Explore BrainMass

    rates with continuous compounding

    This content was COPIED from BrainMass.com - View the original, and get the already-completed solution here!

    The 6-month, 12-month, 18-month, and 24-month zero rates are 3%, 3.5%, 3.75%, and 4% with semi-annual compounding.

    Q1: What are the rates with continuous compounding?

    Q2: What is the forward rate for the six-month period beginning in 18 months?

    © BrainMass Inc. brainmass.com October 10, 2019, 12:02 am ad1c9bdddf
    https://brainmass.com/economics/finance/rates-continuous-compounding-276292

    Solution Summary

    Rates with continuous compounding are examined.

    $2.19