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Both Bond Sam and Bond Dave have 7 percent coupons, make semiannual payments, and are priced at par value. Bond Sam has 5 years to

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Both Bond Sam and Bond Dave have 7 percent coupons, make semiannual payments, and are priced at par value. Bond Sam has 5 years to maturity, whereas Bond Dave has 13 years to maturity. If interest rates suddenly rise by 4 percent, what is the percentage change in the price of Bond Sam? -15.08% -17.75% 15.57% -15.06% If interest rates suddenly rise by 4 percent, what is the percentage change in the price of Bond Dave? -27.32% -37.60% 29.97% -27.30% If rates were to suddenly fall by 4 percent instead, what would the percentage change in the price of Bond Sam be then? 18.44% 15.57% 18.42% -15.03% If rates were to suddenly fall by 4 percent instead, what would the percentage change in the price of Bond Dave be then? 42.80% 29.97% 42.78% -27.27%

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