4. Your portfolio consists of a two-year zero-coupon bond with a face value of $1,000 and a 10-year zero-coupon bond with a face value of $5,000. The term structure of interest rates is as follows. Use continuous compounding to: a. Compute duration and convexity for this portfolio. b. Use duration and convexity to predict the return to your portfolio if interest rates increase by 1%. 1 Mo 2 Mo 3 Mo 6 Mo 1 Y 2 Y 3 Yr 5Y 7 Yr 10 Yr 20 Yr 30 Yr 1.79 1.77 1.82 1.81 1.73 1.56 1 .51 1.51 1.59 1.65 1.93 2.11 4. Your portfolio consists of a two-year zero-coupon bond with a face value of $1,000 and a 10-year zero-coupon bond with a face value of $5,000. The term structure of interest rates is as follows. Use continuous compounding to: a. Compute duration and convexity for this portfolio. b. Use duration and convexity to predict the return to your portfolio if interest rates increase by 1%. 1 Mo 2 Mo 3 Mo 6 Mo 1 Y 2 Y 3 Yr 5Y 7 Yr 10 Yr 20 Yr 30 Yr 1.79 1.77 1.82 1.81 1.73 1.56 1 .51 1.51 1.59 1.65 1.93 2.11