1. Both Bond Sam and Bond Dave have 3 percent coupons, make semiannual payments, and are priced at par value. Bond Sam has 4 years to maturity, whereas Bond Dave has 8 years to maturity.

a) If interest rates suddenly rise by 1% point, what is the percentage change in the price of Bond Sam?

b) If interest rates suddenly rise by 1% point, what is the percentage change in the price of Bond Dave?

c) If interest rates suddenly fall by 1% point instead, what is the percentage change in the price of Bond Sam?

d) If interest rates suddenly fall by 1% point instead, what is the percentage change in the price of Bond Dave?