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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
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 18 years to maturity. If interest rates suddenly rise by 4 percent, what is the percentage change in the price of Bond Sam? 7.07%7.63%7.09%7.24% If interest rates suddenly rise by 4 percent, what is the percentage change in the price of Bond Dave? 33.09%37.58%33.07%49.46% If rates were to suddenly fall by 4 percent instead, what would the percentage change in the price of Bond Sam be then? 7.78%7.24%7.80%7.04% If rates were to suddenly fall by 4 percent instead, what would the percentage change in the price of Bond Dave be then? 60.20%37.58%33.04%60.22% 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 18 years to maturity. If interest rates suddenly rise by 4 percent, what is the percentage change in the price of Bond Sam? 7.07%7.63%7.09%7.24% If interest rates suddenly rise by 4 percent, what is the percentage change in the price of Bond Dave? 33.09%37.58%33.07%49.46% If rates were to suddenly fall by 4 percent instead, what would the percentage change in the price of Bond Sam be then? 7.78%7.24%7.80%7.04% If rates were to suddenly fall by 4 percent instead, what would the percentage change in the price of Bond Dave be then? 60.20%37.58%33.04%60.22%
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