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Both Bond Sam and Bond Dave have 8 percent coupons, make semiannual payments, and are priced at par value. Bond Sam has 5 years to
Both Bond Sam and Bond Dave have 8 percent coupons, make semiannual payments, and are priced at par value. Bond Sam has 5 years to maturity, whereas Bond Dave has 18 years to maturity. (Do not round your intermediate calculations.) Requirement 1: (a)lf interest rates suddenly rise by 5 percent, what is the percentage change in the price of Bond Sam? (Click to select) (b)if interest rates suddenly rise by 5 percent, what is the percentage change in the price of Bond Dave? (Click to select) Requirement 2: (a)lf rates were to suddenly fall by 5 percent instead, what would the percentage change in the price of Bond Sam be then? (Click to select) (b)lf rates were to suddenly fall by 5 percent instead, what would the percentage change in the price of Bond Dave be then? (Click to select)
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