Exercise: The current yield curve is flat at 5%. a) What are the values of the duration and the convexity for the following bonds without gdefault risk? Zero Bond, matures in 4.35 years; nominal value 100 (pari) - Coupon bond, matures in 5 years; nominal value 100 (pari); coupon rate 8% b) Which bond should an investor choose? Which bond has a higher interest rate risk