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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 4 years to
Both Bond Sam and Bond Dave have 7 percent coupons, make semiannual payments, and are priced at par value. Bond Sam has 4 years to maturity, whereas Bond Dave has 17 years to maturity. If interest rates suddenly rise by 4 percent, what is the percentage change in the price of Bond Sam? 13.02% -14.51% O-12.67% -12.65% If interest rates suddenly rise by 4 percent, what is the percentage change in the price of Bond Dave? -43.83% O 34.62% -30.45% -30.47% If rates were to suddenly fall by 4 percent instead, what would the percentage change in the price of Bond Sam be then? -12.62% 13.02% O 14.97% O 14.95% If rates were to suddenly fall by 4 percent instead, what would the percentage change in the price of Bond Dave be then? 0 52.96% 0-30.42% O 34.62% 0 52.94%
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