1. A bond has a yield to maturity of 4.5%, a duration of 14 years, and a 20 year maturity. By what percentage will the bond's price change if market interest rates decrease by 0.5%?
+7.66 percent
-6.70 percent
+6.70 percent
-7.66 percent
2. Sandy purchased 10 shares of a stock 9 months ago for $22 a share, received a $1 dividend per share during this time period, and sold the 10 shares of the stock today for $26 per share. Sandy has a marginal tax rate of 28%. Both long-term capital gains and dividend income is taxed at 15%. What is Sandy's after-tax holding period return?
17.72%
16.95%
18.28%
19.32%