A 5-year, $1,000 face bond with a 3% coupon is currently selling with a 4% YTM (yield to maturity). Purchase price of the bond: $955.48

If market yields were to drop by 1%, what is the approximate percentage change in price you would expect, based on the bonds duration? 4.83%, 5.12%, 4.95%, 4.71%

How long should you hold the bond, if you want to earn the 4% YTM that you thought you would get when you bought the bond? 4.95 years, 4.71 years, 5 years, 4.83 years