1.Renegade Sports have issued 5 year bonds to raise capital for expansion into new markets. The bonds pay coupons annually at an effective annual rate of 9% pa. The face amount of the bonds is $115,000 and they have an effective annual yield of 4% pa. Calculate the duration (D) of the Renegade bonds. Give your answer in years to 2 decimal places.

2.A portfolio consists of the following two investments:

a bond with face value of $100.00 paying annual coupons of 10% maturing in 5 years

an annuity with payments of $60.00 at the end of each year for 5 years

The portfolio is comprised of 38% bonds and 62% annuities.

The term structure is flat and the current yield is 7% pa effective.

Calculate the duration (D) of the portfolio. Give your answer to 2 decimal places.