Consider the trade of purchasing a 10-year zero coupon bond and hedge the interest rate risk using a 2-year zero coupon bond. Assume the term structure of interest rates is flat at the 4.5% continuously compounded interest rate. Compute the profits/losses from the strategy under various scenarios of interest rate variation (e.g. positive or negative shift of 0.1%, 1.0% 2.0%)

Perform the exercise assuming the trade is performed over one day, over one week (assume a week consists of 5 days), and over one month (assume a month consist of 22 days).