Imagine a 10 year bond paying annual coupons of $4 and a face value of $100. Using the duration-matching approach discussed in class, how many of these bonds (assume that you can purchase fractions of bonds) would you purchase to hedge your liabilities? Calculate the percentage change in the value of your obligations if the interest rate were to drop from 4.0% to 3.9%. Calculate the percentage change in the value of the bond if the interest rate were to drop from 4.0% to 3.9%.