1 ) A government bond is currently selling for $1,135 and pays $80 per year in interest for 11 years when it matures. If the redemption value of this bond is $1,000, what is its yield to maturity if purchased today for $1,135?

Answer: __________% (two decimal points)

2) Jimmy Bank holds $16 million in government bonds having a duration of 12 years. If interest rates suddenly rise from 3.5 percent to 4.3 percent, what percentage change should occur in the bonds market price?

Answer: __________% (two decimal points)