1. Find the duration of a 6% coupon bond making annual coupon payments if it has four years to maturity and a yield to maturity of 5%. (assuming a face value of $1,000)

2. You own a fixed income asset with a MaCaulay duration of 5 years. If the level of required yields, which is currently at 8%, goes down by 0.10%, how much do you expect the price of the asset to change (in percentage terms)?