1. You are an active bond portfolio manager and you have identified two bonds (Bond A and Bond B) that are trading on the Bond Exchange of South Africa. Bond A has a duration of 8-years while Bond B has a duration of 3-years. You believe interest rates will significantly increase in the near future. Based on this information, which of these two bonds would you prefer to hold if you want to minimise your capital losses? Justify your answer? [2] 2. Assume you have two bonds with identical durations. Is it definite that these two bonds would have the same yield-to-maturity? Justify your answer. [2]