Both Bond Sam and Bond Dave have 7% coupons, make semiannual payments, and are priced at par value.

Bond Sam has 3 years to maturity, whereas Bond Dave has 14 years to maturity.

1:

(a)	If interest rates suddenly rise by 3 percent, what is the percentage change in the price of Bond Sam?
	A. 8.42% B. -7.59% C. -8.24% D. 7.75% E. -7.61%

(b)	If interest rates suddenly rise by 3 percent, what is the percentage change in the price of Bond Dave?
	A. -22.33% B. -28.78% C. 24.20% D. -22.35% E. 31.94%

2:

(a)	If rates were to suddenly fall by 3 percent instead, what would the percentage change in the price of Bond Sam be then?
	A. 8.38% B. 8.45% C. 7.75% D. 8.40% E. -7.56%

(b)	If rates were to suddenly fall by 3 percent instead, what would the percentage change in the price of Bond Dave be then?
	A. 31.92% B. 31.97% C. -22.30% D. 24.20% E. 31.90%