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Bond Sam and Bond Dave both have 7 percent coupon bonds outstanding, with semiannual interest payments, and both are priced at par value. Bond Sam

Bond Sam and Bond Dave both have

7

percent coupon bonds outstanding, with semiannual interest payments, and both are priced at par value. Bond Sam bond has six years to maturity, whereas the Bond Dave bond has

19

years to maturity.

If interest rates suddenly rise by

2

percent, what is the percentage change in the price of these bonds?

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