2(1) An FI purchases at par value a $100,000 Treasury bond paying 10 percent yield with a 7.5 year duration. If interest rates rise by 4 percent, calculate the bond's new value. Treasury bonds pay interest semiannually. Use the duration valuation equation (Modified Duration, Dollar Duration, and Percentage Change in Price Equation) 2(2) What are the two different general interpretations of the concept of duration, and what is the technical definition of this term? How does duration differ from maturity?