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Problem 3: Consider a Zero Coupon bond, priced semiannually as per (*) P= M/ (1+i) In the following be sure to simplify as much as

Problem 3: Consider a Zero Coupon bond, priced semiannually as per () P= M/ (1+i)" In the following be sure to simplify as much as possible to obtain nice formulae involving P, M, i, and n. a. Find d4;. Simplify the expression so that P appears on the right side of the equal sign. b. Find DMOD. Be sure to simplify using (). c. Find DM. Be sure to simplify using (). Any comments? d. Find the convexity. Be sure to simplify using ()

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