Exercise 3.5.4 (1) Derive ∂ P/∂n and ∂ P/∂r for zero-coupon bonds. (2) For r = 0.04 and n = 40 as in Example 3.5.1, verify that the price will go down by approximately d×8.011% of par value for every d% increase in the period interest rate r for small d.