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Both Bond Sam and Bond Dave have 6 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 6 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? If interest rates suddenly rise by 5 percent, what is the percentage change in the price of Bond Dave? K Prev8 of 11 Next Saved If rates were to suddenly fall by 5 percent instead, what would the percentage change in the price of Bond Sam be then? If rates were to suddenly fall by 5 percent instead, what would the percentage change in the price of Bond Dave be then? K Prev8 of 11 Next

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