D&D 5E Bound Demon in Extradimensional Space

[revnodice]

The Setup:
The Demon Lord Orcus (MM52) is bound to an object (MM51). The binding occurred on the Material Plane. Time passes... My player characters found the object and placed it inside Heward's Handy Haversack (DMG174). Per the description of Heward's Handy Haversack, the object went into an extradimensional space.

The Questions:
1.) Can extradimensional spaces exist within the Material Plane?

2.) Does placing the object into an extradimensional space break the binding which occurred on the Material Plane?

 

[Kobold Stew]

1. yes (fuller answer: I know of no reason to think it might not, for a natural use of "within")
2. no (fuller answer: nothing in the text says dimension-changing should weaken it, and while it could be a cool hook for a larger adventure, it should't be a "gotcha" on the players).