#17. Both Bond Sam and Bond Dave have 9 percent coupons, make semiannual payments, and are priced at par value. Bond Sam has 4 years to maturity, whereas Bond Dave has 16 years to maturity.

If interest rates suddenly rise by 2 percent, what is the percentage change in the price of Bond Sam?

1. -6.31%
2. -6.76%
3. -6.33%
4. 6.43%

If interest rates suddenly rise by 2 percent, what is the percentage change in the price of Bond Dave?

1. 16.01%
2. -17.51%
3. -14.90%
4. -14.88%

If rates were to suddenly fall by 2 percent instead, what would the percentage change in the price of Bond Sam be then?

1. 6.85%
2. -6.28%
3. 6.43%
4. 6.87%

If rates were to suddenly fall by 2 percent instead, what would the percentage change in the price of Bond Dave be then?

1. 19.05%
2. -14.85%
3. 16.01%
4. 19.07%