The following information is about current spot rates for Mega Savings' assets (loans) and liabilities (CDs). All interest rates are fixed and paid annually.

Assets	Liabilities
1-year loan rate: 7.50 percent	1-year CD rate: 6.50 percent
2-year loan rate: 8.15 percent	2-year CD rate: 6.65 percent

a). What is the duration of this Treasury note?

b). If interest rates increase by 20 basis points (i.e., DR = 20 basis points), use the duration approximation to determine the approximate price change for the Treasury note. Briefly discuss.