a) Your portfolio contains 60% of Bond I and 40% of Bond II. Details of the two bonds are given below: I. 10-year zero coupon government bond, par value $1000, current price = $613.91 II. 10-year zero coupon corporate bond, par value $1000, default premium= 2% Find the price of Bond II. Find the convexity of Bond I. (4 marks) b) Compare and contrast between hedging and speculation. (3 marks) and 18.50. c) January 520 and January 500 calls for ZOOM are traded at 10.50 respectively. Which one is more likely to end up in the money? Why? (3 marks)