Both Bond Sam and Bond Dave have 12 percent coupons, make semiannual payments, and are priced at par value. Bond Sam has 3 years to maturity, whereas Bond Dave has 20 years to maturity. Both bonds have a par value of 1,000.

a. If interest rates suddenly rise by 3 percent, what is 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 answers as a percent rounded to 2 decimal places, e.g., 32.16.

b. If rates were to suddenly fall by 3 percent instead, what would be the percentage change in the price of these bonds? Note: Do not round intermediate calculations and enter your answer as a percent rounded to 2 decimal places, e.g., 32.16

Both Bond Sam and Bond Dave have 12 percent coupons, make semlannual payments, and are priced at par value. Bond Sam has 3 years to maturlty, whereas Bond Dave has 20 years to maturity. Both bonds have a par value of 1,000 . a. If Interest rates suddenly rise by 3 percent, what is the percentage change in the price of these bonds? Note: A negatlve answer should be Indlcated by a minus slgn. Do not round Intermedlate calculations and enter your answers as a percent rounded to 2 declmal places, e.g., 32.16. b. If rates were to suddenly fall by 3 percent instead, what would be the percentage change In the price of these bonds? Note: Do not round Intermedlate calculatlons and enter your answer as a percent rounded to 2 declmal places, e.g., 32.16