6. Both Bond Sam and Bond Dave have 10 percent coupons, make semiannual payments, and are priced at par value. Bond Sam has 2 years to maturity, whereas Bond Dave has 12 years to maturity.

If interest rates suddenly rise by 3 percent, what is the percentage change in the price of Bond Sam?5.22%

-5.14%

-5.12%

-5.42%

If interest rates suddenly rise by 3 percent, what is the percentage change in the price of Bond Dave?-21.93%

-17.97%

19.41%

-17.99%

If rates were to suddenly fall by 3 percent instead, what would the percentage change in the price of Bond Sam be then?5.22%

5.51%

5.49%

-5.09%

If rates were to suddenly fall by 3 percent instead, what would the percentage change in the price of Bond Dave be then?24.09%

19.41%

-17.94%

24.07%