Both Bond Sam and Bond Dave have 10 percent coupons, make semiannual payments, and are priced at par value. Bond Sam has 5 years to maturity, whereas Bond Dave has 18 years to maturity. (Do not round your intermediate calculations.)

Requirement 1:

(a)	If interest rates suddenly rise by 2 percent, what is the percentage change in the price of Bond Sam?
	(Click to select)7.50%-7.34%-7.36%-7.94%8.13%

(b)	If interest rates suddenly rise by 2 percent, what is the percentage change in the price of Bond Dave?
	(Click to select)-14.60%15.90%18.93%-17.12%-14.62%

Requirement 2:

(a)	If rates were to suddenly fall by 2 percent instead, what would the percentage change in the price of Bond Sam be then?
	(Click to select)-7.31%7.50%8.09%8.16%8.11%

(b)	If rates were to suddenly fall by 2 percent instead, what would the percentage change in the price of Bond Dave be then?
	(Click to select)-14.57%18.96%15.90%18.91%18.89%

rev: 09_18_2012