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4 Both Bond Sam and Bond Dave have 8 percent coupons, make semiannual payments, and are priced at par value. Bond Sam has 2 years
4 Both Bond Sam and Bond Dave have 8 percent coupons, make semiannual payments, and are priced at par value. Bond Sam has 2 years to maturity, whereas Bond Dave has 14 years to maturity If interest rates suddenly rise by 4 percent, what is the percentage change in the price of Bond Sam? ped 7.08% -6.93% -6.91% -7.45% If interest rates suddenly rise by 4 percent, what is the percentage change in the price of Bond Dave? 0 26.81% -26.79% -36.64% 29.86% If rates were to suddenly fall by 4 percent instead, what would the percentage change in the price of Bond Sam be then? -6.88% 7.62% 7.60% O 7.08% w Prey 14 16 Neyt of Bond Dave? -26.81% -26.79% -36.64% 29.86% If rates were to suddenly fall by 4 percent instead, what would the percentage change in the price of Bond Sam be then? -6.88% 7.62% 7.60% 7.08% If rates were to suddenly fall by 4 percent instead, what would the percentage change in the price of Bond Dave be then? 29.86% 42.54% -26.76% 42.56%
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