1. A 9 year bond has a yield of 9.5% and a duration of 8.836 years. If the market yield changes by 50 basis points, what is the percentage change in the bond's price? (Do not round intermediate calculations. Input the amount as a positive value. Round your answer to 2 decimal places.
2. You have been managing a $5 million portfolio that has a beta of 1.85 and a required rate of return of 12%. The current risk-free rate is 3.25%. Assume that you receive another $500,000. If you invest the money in a stock with a beta of 1.30, what will be the required return on your $5.5 million portfolio? Do not round intermediate calculations. Round your answer to two decimal places.