1. The NASDAQ stock market bubble peaked at 5,430 in 2000. Two and a half years later it had fallen to 1,160. What was the percentage decline? (Negative answer should be indicated with a minus sign. Round your answer to 2 decimal places.)
2. An 8% 15 year bond has a YTM of 7%. If the YTM falls by 1%, what will the new price be? What will it be approximately? Is duration adequate to describe this bond? Why positive or negative?