3 Both Bond Sam and Bond Dave have 6.5 percent coupons, make semiannual payments, and are priced at par value. Bond Sam has 3 years to maturity, whereas Bond Dave has 20 years to maturity. If interest rates suddenly rise by 2 percent, what is the percentage change in the price of Bond Sam? Of Bond Dave? If rates were to suddenly fall by 2 percent instead, what would the percentage change in the price of Bond Sam be then? Of Bond Dave? All bond price answers should be dollar prices. 5 6 8 Bond Sam: Coupon rate Settlement date Maturity date Redemption (% of par) # of coupons per year 9 6.5% 1/1/2000 1/1/2003 100 2 10 11 12 13 14 15 Bond Dave: Coupon rate Settlement date Maturity date Redemption (% of par) #of counons ner vear Sheet1 6.5% 1/1/2000 1/1/2020 100 2 16 17 18 > + 1009 E READY Hint