1. Assume that there is a bond that pays $50 at the end of year 1, and $115 at the end of year 5. It sells for a total= $(50.00+115.00). The Macauley duration of the bond is? Please answer with two digits decimal accuracy.
2. Consider a bond with maturity 2 years, $100 face value, coupon rate of 5.6%, and a yield of 4.25%. Compute a dollar duration numerically using dy=0.001%. Show work and answer with two digits decimal accuracy and the correct sign (- or +).