In this reading i do understand how to compute the Continuous Forward Rate using Spot Rate/Zero Rate.
Formula - RF = (R2T2-R1T1)/(T2-T1)
However in the example on Page 50 the question asked is -
"what is the six-month semi-annual forward rate starting in 1.5 years " But the a...
209.1. Nine (9) companies among a random sample of 60 companies defaulted. The companies
were each in the same highly speculative credit rating category: statistically, they represent a
random sample from the population of CCC-rated companies. The rating agency contends that