Question: Please answer all parts (a) through (c). (3pts) For a T-year zero coupon bond with continuously compounded yield y, compute (a) Its modified duration, 1/P

Please answer all parts (a) through (c). (3pts) For a T-year

Please answer all parts (a) through (c).

(3pts) For a T-year zero coupon bond with continuously compounded yield y, compute (a) Its modified duration, 1/P xdP/dy (b) Its convexity, dP/dy2 (c) Compute the price, modified duration, and convexity of a 5 year zero coupon bond with continuously compounded yield of 5%. (3pts) For a T-year zero coupon bond with continuously compounded yield y, compute (a) Its modified duration, 1/P xdP/dy (b) Its convexity, dP/dy2 (c) Compute the price, modified duration, and convexity of a 5 year zero coupon bond with continuously compounded yield of 5%

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