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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 3 years to

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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 3 years to maturity, whereas Bond Dave has 18 years to maturity. If interest rates suddenly rise by 5 percent, what is the percentage change in the price of Bond Sam? 12.10% 13.77% 12.47% 12.08% If interest rates suddenly rise by 5 percent, what is the percentage change in the price of Bond Dave? 34.46% 34.48% 40.88% 52.62% If rates were to suddenly fall by 5 percent instead, what would the percentage change in the price of Bond Sam be then? 14.24% 12.47% 14.22%

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