PART 1: Village bank has 7-year zero coupon bonds with a total face value of $30 million. The current market yield on the bonds is 10 percent. What is the price volatility if the maximum potential adverse move in yields is estimated at 10 basis points? (Please enter your answer in percentage with 3 digits after the decimal point!)

PART 2: What is the daily earnings at risk (DEAR) of this bond portfolio (assume that the Village bank only has 7-year zero coupon bonds with a total face value of $30 million in its portfolio)?