The Six-Month Zero Rate Is 8% Per Annum with Semiannual

question 5

Multiple Choice

The six-month zero rate is 8% per annum with semiannual compounding.The price of a one-year bond that provides a coupon of 6% per annum semiannually is 97.What is the one-year continuously compounded zero rate?

• A) 8.02%
• B) 8.52%
• C) 9.02%
• D) 9.52%

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