6. The 1-year zero yield is 4% p.a. The 12x48 forward rate is 8% p.a. These two rates are semi-annual compounding. Relyi

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answerhappygod
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6. The 1-year zero yield is 4% p.a. The 12x48 forward rate is 8% p.a. These two rates are semi-annual compounding. Relyi

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6. The 1-year zero yield is 4% p.a. The 12x48 forward rate is 8%
p.a. These two rates are semi-annual compounding. Relying on the
fact that the value of an FRA is zero at inception, compute the
4-year zero yield. Please report per annum semi-annually
compounding rates.
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