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Posted: **Fri Mar 04, 2022 9:41 am**

: 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 1 (26.82 KiB) Viewed 43 times

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. (4 pts)