1. A bond with a $1,000 face value has a 8% annual coupon rate. The bond matures in 10 years. The current YTM on the bond is 4.9%. If this bonds' YTM were to increase to 5.5%, what would be the resulting price change in dollar terms? Round to the nearest cent. [Hint: 1) If the price drops, the change is a negative number. 2) Calculate the precise impact of a yield change on the bond's price by computing and comparing the prices under the two scenarios. Do not use the duration approach here, which gives the approximate price impact of a yield change.]

2. Suppose you structured a bond deal for Kanye West that paid him $20 million upfront, with future royalties and streaming revenues from his past albums going towards payments to bondholders. Each bond had a face value of $1,000 and a coupon rate of 9.0% with semi-annual coupons. If the bonds have 6 years remaining until maturity and the current yield to maturity is 11.0%, how much is the bond worth? Round to the nearest cent.