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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

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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 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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