1. You own a bond that has a duration of 6 years. Interest rates are currently 7%, but you believe the Fed is about to increase interest rates by 30 basis points. Your predicted price change on this bond is ________. (Select the closest answer.)
a. +1.68%
b. –1.68%
c. –5.61%
d. +5.61%
2. Credit unions are classified as _________ institutions, while pension funds are classified as contractual savings financial institutions.
A. Deposit-type
B. Contractual savings
C. Federal agency
D. Mutual fund