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Both Bond Sam and Bond Dave have 7 percent coupon bonds outstanding, with semiannual interest payments, and both are currently priced at the par value
Both Bond Sam and Bond Dave have percent coupon bonds outstanding, with semiannual interest payments, and both are currently priced at the par value of $ Bond Sam has four years to maturity, whereas the Bond Dave has years to maturity.
If interest rates suddenly rise by percent, what is the percentage change in the price of each bond?
Note: A negative answer should be indicated by a minus sign. Do not round intermediate calculations and enter your answers as a percent rounded to decimal places, eg
If rates were to suddenly fall by percent instead, what would be the percentage change in the price of each bond?
Note: Do not round intermediate calculations and enter your answers as a percent rounded to decimal places, eg
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