Betty and Bob pay $6,780.31 for a portfolio consisting of a 2-year Zero Coupon Bond with maturity value of $5,000 and a 3-year Zero Coupon Bond with maturity value of $4,000.

1. Using Newtons Method with a table of several rows, find the yield to maturity per annum compounded semiannually. Your final answer should be correct to 3 places after the decimal point. (Check your answer by inserting it into the original equation.) ______________

2. Using the definition of Macaulay Duration and the result from part a, find the Macaulay Duration of the portfolio. Your final answer should be stated in years and should be correct to 3 places after the decimal point. _______