Bond Sam and Bond Dave both have

$8$

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

$1$

$7$

$$years to maturity.

$$

a

$)$

If interest rates suddenly rise by

$2$

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

$($

A negative answer should be indicated by a minus sign. Do not round intermediate calculations and enter your answers as a percent rounded to

$2$

$$decimal places, e

$.$

g

$.$

$,$

$3$

$2$

$.$

$1$

$6$

$.$

$)$

Percentage change in price of Bond Sam

$\%$

Percentage change in price of Bond Dave

$\%$

b

$)$

$$If interest rates were to suddenly fall by

$2$

$$percent instead, what would the percentage change in the price of these bonds be then?

$($

Do not round intermediate calculations and enter your answers as a percent rounded to

$2$

$$decimal places, e

$.$

g

$.$

$,$

$3$

$2$

$.$

$1$

$6$

$.$

$)$

Percentage change in price of Bond Sam

$\%$

Percentage change in price of Bond Dave

$\%$