Question: For a T-year zero coupon bond with continuously compounded yield y, compute a) Its modied duration, 1/P dP/dy b) Its convexity, c) Compute the price,

For a T-year zero coupon bond with continuously compounded yield y, compute

a) Its modied duration, 1/P dP/dy

b) Its convexity, For a T-year zero coupon bond with continuously compounded yield y, compute

c) Compute the price, modified duration, and convexity of a 5 year zero coupon bond with continuously compounded yield of 5%.

dp/dy

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