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Both Bond Sam and Bond Dave have $9\mathrm{.}8$ percent coupons, make semiannual payments and are priced at par value. Bond Sam has $7$ years to maturity, whereas Bond Dave has $24$ years to maturity. Both bonds have a par value of $1,000.[$hint: recall the relationship between coupon rate and YTM when a bond is priced at par value?$]$

a$.$ If market interest rates $($discount rate$)$ suddenly rise by $2$ percent, what would be the price of these bonds?

Do not round intermediate calculations and enter your answers as a percent rounded to $2$ decimal places, e$.$g$.,32\mathrm{.}16.$

b$.$ What would be the percentage change in the price of these bonds?

Note: A negative answer should be indicated by a minus sign. Do not round intermediate calculations and enter your answer as a percent rounded to $2$ decimal places, e$.$g$.,32\mathrm{.}16.$

$\backslash$table$[[,$Bond Sam,Bond Dave$],[$a$.$ Price of bond,,$],[$b$.$ Percentage change in price,$\%,]]$th Bond and Sam and Bond Dave have $9\mathrm{.}8$ percent coupons, make semiannual payments and are priced at par value

ears to maturity, whereas Bond Dave has $24$ years to maturity. Both bonds have a par value of $1,000.[$hir

hip between coupon rate and YTM when a bond is priced at par value?$]$

interest rates $($discount rate$)$ suddenly rise by $2$ percent, what would be the price of these bonds?

und intermediate calculations and enter your answers as a percent rounded to $2$ decimal places, e$.$g

ild be the percentage change in the price of these bonds?

legative answer should be indicated by a minus sign. Do not round intermediate calculations and en

s a percent rounded to $2$ decimal places, e$.$g$.,32\mathrm{.}16.$