Both Bond Sam and Bond Dave have $6\mathrm{.}5$ 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. If interest rates suddenly rise by

$2$ percent, what is the percentage change in the price of Bond Sam? Of Bond

Dave? If rates were to suddenly fall by $2$ percent instead, what would the

percentage change in the price of Bond Sam be then? Of Bond Dave? All

bond price answers should be dollar prices.

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Complete the following analysis. Do not hard code values in your calculations. Leave the $"$ basis" input blank in the function. All bond prices should be in dollars. You must used the built in excel funcition to answer the bond price questions.

Question #$1$:

Price at current YTM:

Price of bond Sam? $=$PRICE$($D$8,$D$9,$D$7,$D$21,$D$10,$D$11)\%*$D$20$ DOES NOT WORK

Price of bond Dave?