Consider the following.

a.What is the duration of a two-year bond that pays an annual coupon of 10 percent and whose current yield to maturity is 14 percent? Use $1,000 as the face value.(Do not round intermediate calculations.Round your answer to 3 decimal places. (e.g., 32.161))

b.What is the expected change in the price of the bond if interest rates are expected to decrease by 0.7 percent?(Negative amount should be indicated by a minus sign. Do not round intermediate calculations. Round your answer to 2 decimal places. (e.g., 32.16))