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PLEASE ANSWER BOTH WILL UPVOTE You own a bond that has a duration of 9 years. Interest rates are currently 5 (in %) but you

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PLEASE ANSWER BOTH WILL UPVOTE

You own a bond that has a duration of 9 years. Interest rates are currently 5 (in \%) but you believe the Fed is about to increase interest rates by 25 basis points. What is the predicted price change on this bond using duration? Enter your answer with the appropriate sign and with four decimals (for example: 0.0327) Question 4 A pension fund has an average duration of its liabilities equal to 11 years. The fund is looking at 4 year maturity zero coupon bonds and 4% yield perpetuities to immunize its interest rate risk. How much of its portfolio should it allocate to the zero coupon bonds to immunize if there are no other assets funding the plan? Enter your answer with four decimals (for example: 0.4624)

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