QUESTION 1 A bond has a MacD of 14.6, ModD of 13.8 and DV01 of $2.5. Suppose its yield to maturity goes up one basis point (e.g., from 3.45% to 3.46%). Which of the following is the most likely to be...

Please answer both parts

Extracted text: QUESTION 1 A bond has a MacD of 14.6, ModD of 13.8 and DV01 of $2.5. Suppose its yield to maturity goes up one basis point (e.g., from 3.45% to 3.46%). Which of the following is the most likely to be true? O The bond price should decrease by approximately $14.6. O 'The bond price should increase by approximately $2.5. O The bond price should decrease by approximately $2.5. O The bond price should decrease by approximately 13.8%. O The bond price should increase by approximately $13.8. QUESTION 2 Which of the following is/are CORRECT regarding stocks? Select all that apply. O In an efficient stock market, it should be easy to make money trading by locating misvalued stocks. O Bondholders are the residual claimants of corporations' cash flows. O Stocks are typically riskier investments compared to bonds. O A company issuing shares in the public equity market for the very first time is referred to as an IPO. O Stocks with high valuation multiples are referred to as "value stocks".