rates with continuous compounding

Related BrainMass Solutions

• Continuous Compounding, Forward Rate, Value of FRA

  Chapter 4 The 6-month, 12-month, 18-month, and 24-month zero rates are 3.00%, 3.50%, 4.00%, and 4.50% with semi-annual compounding. Q I: What are the rates with continuous compounding?

• Price a sequence of zero rates

  266581 Price a sequence of zero rates Suppose you have the price a sequence of zero rates Maturity (Yrs) Zero rates (Continuous compounding) 0.5 5.20% 1 5.30% 1.5 5.30% 2 5.45% (a) If convert Zero rates to compound

• Continuous compounding, gain or loss, equivalent rate

  The continuous compounding, gain or loss, and equivalent rates are examined.

• Continuous Compounding, Duration, Bond future, Swap

  (a) What are the rates with continuous compounding? (b) What is the forward rate for the 6-month period beginning in 18 months?

• Estimate the cash price of a bond with a value

  450717 Estimate the cash price of a bond with a value Suppose that 6 month, 12 month, 18 month, 24 month, and 30 month Zero rates are 4%, 4.2%, 4.4$, 4.6%, and 4.8% per annum with continuous compounding respectively.

• Derivatives (Futures and Options)

  Question 13: An interest rate is 15% per annum when expressed with quarterly compounding. What is the equivalent rate with continuous compounding? Question 14: An interest rate is 8% per annum expressed with continuous compounding.

• Present Value / Future Value

  What is the future value of $4,000 invested at 6% for 22 years with continuous compounding?

• continuous compounding

  The expert examines growth rate models with annual compounding and continuous compounding.

• Present value with Continuous Compounding

  Determines present value with continuous compounding.