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Both Bond Sam and Bond Dave have 7% coupons, make semiannual payments and are priced at par value. Bond Sam has three years to maturity,
Both Bond Sam and Bond Dave have 7% coupons, make semiannual payments and are priced at par value. Bond Sam has three years to maturity, whereas Bond Dave has 20 years to maturity. (Negative answers should be indicated by a minus sign. Round the final answer to 2 decimal places.) If interest rates suddenly rise by 2%, what is the percentage change in the price of Bond Sam and Bond Dave? Percentage change in price of Bond Sam Percentage change in price of Bond Dave If rates were to suddenly fall by 2% instead, what would the percentage change in the price of Bond Sam and Bond Dave? Percentage change in price of Bond Sam Percentage change in price of Bond Dave 8
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