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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 2 years to
Both Bond Sam and Bond Dave have 7 percent coupons, make semiannual payments, and are priced at par value. Bond Sam has 2 years to maturity, whereas Bond Dave has 11 years to maturity. If interest rates suddenly rise by 4 percent, what is the percentage change in the price of Bond Sam? 0 -6.99% O 7.16% 0 -7.54% 0 -7.01% If interest rates suddenly rise by 4 percent, what is the percentage change in the price of Bond Dave? O 27.14% 0-25.17% 0-33.63% 0-25.15% If rates were to suddenly fall by 4 percent instead, what would the percentage change in the price of Bond Sam be then? o 7.71% O 7.69% O 7.16% O-6.96% If rates were to suddenly fall by 4 percent instead, what would the percentage change in the price of Bond Dave be then? O 37.24% O 27.14% O 37.22% 0-25.12%
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