Zero-Coupon Bond Continuous Compounding

Question

You are given B(0,1)=.92 for a one year zero-coupon bond with a face value of $1, assuming continuous compounding. What is the value of the zero-coupon bond at the end of each quarter? At what time will you realize a 6% return?

Answer 1

The value of such a bond is $Ae^{\lambda t}$ where $A$ is the initial value, here $0.92$ and $\lambda$ is set by the final value, so you have $1=0.92 e^{\lambda t}$. Evaluate $\lambda$, then you can get the value at $0.25, 0.5, 0.75$