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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

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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 14 years to maturity. If interest rates suddenly rise by 5 percent, what is the percentage change in the price of Bond Sam? \begin{tabular}{c} 8.37% \\ 8.60% \\ 8.35% \\ 9.14% \\ \hline \end{tabular} If interest rates suddenly rise by 5 percent, what is the percentage change in the price of Bond Dave? 28.93%28.91%33.29%40.71% If rates were to suddenly fall by 5 percent instead, what would the percentage change in the price of Bond Sam be then? 8.32%8.60%9.40%9.38% If rates were to suddenly fall by 5 percent instead, what would the percentage change in the price of Bond Dave be then? 28.88%49.91%33.29%49.89%

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