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Both Bond Sam and Bond Dave have 6 . 5 percent coupons, make semiannual payments, and are priced at par value. Bond Sam has 3

Both Bond Sam and Bond Dave have 6.5 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. Bond Sam:
Coupon rate
Settlement date
Maturity date
Redemption (% of par)
# of coupons per year
Bond Dave:
Coupon rate
Settlement date
Maturity date
Redemption (% of par)
# of coupons per year
Par value for both bonds
Current YTM
New YTM
New YTM
6.5%
1/1/2000
1/1/2003
100
2
$
6.5%
1/1/2000
1/1/2020
100
2
1,000
6.5%
8.5%
4.5%
FIND 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 use the built-in Excel function to answer the bond price questions.
Price at current YTM:
Price of Bond Sam
Price of Bond Dave
Price if YTM increases:
Price of Bond Sam
Price of Bond Dave
% change in Bond Sam
% change in Bond Dave
Price if YTM decreases:
Price of Bond Sam
Price of Bond Dave
% change in Bond Sam
% change in Bond Dave
please use excel formulaes and show rok so i can do it
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