Let F be the face value of a zero coupon bond with maturity T. If interest is compounded continuously, the bond price is P = Fe-r(0,1)T = Feyt where y = r(0,T) is the zero rate corresponding to time T, and if interest is compounded discretely m times a year, the bond price is P = F(1 + 'm (0.1)) = F (1+ ) where y = rm(0,7). -mt (a) Find the modified duration D and the convexity C of a zero coupon bond if interest is compounded continuously. (b) Find the modified duration D and the convexity C of a zero coupon bond if interest is compounded discretely m times a year. Let F be the face value of a zero coupon bond with maturity T. If interest is compounded continuously, the bond price is P = Fe-r(0,1)T = Feyt where y = r(0,T) is the zero rate corresponding to time T, and if interest is compounded discretely m times a year, the bond price is P = F(1 + 'm (0.1)) = F (1+ ) where y = rm(0,7). -mt (a) Find the modified duration D and the convexity C of a zero coupon bond if interest is compounded continuously. (b) Find the modified duration D and the convexity C of a zero coupon bond if interest is compounded discretely m times a year