What is f assuming semi-annual compounding

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Problem 1: Suppose the yield curve is as shown below. Assuming semi-annual compounding, what is f(2,4)?

1 year spot rate: 3.20%

2 year spot rate: 3.35%

3 year spot rate: 4.35%

4 year spot rate: 5.25%

Group of answer choices

Option 1: 4.927%

Option 2: 7.185%

Option 3: 6.365%

Option 4: 5.938%

Option 5: 7.168%

Reference no: EM132642702

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