Problem Set 3
Please show all work. Please use four decimal places for all calculations.
Maturity
(Months) |
Zero Rate
(% per annum with continuous compounding) |
3 | 2.0 |
6 | 3.2 |
9 | 4.0 |
Time
(years) |
Zero Rate | Discount Factor | Bfix Cash Flow ($) | Bfl Cash Flow ($) | Present Value of Bfix ($) | Present Value of Bfl ($) |
Total |