Both Bond Sam and Bond Dave have 9 percent coupons, make semiannual payments, and are priced at par value. Bond Sam has 4 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?

multiple choice

-12.18%

-12.16%

12.54%

-13.87%

If interest rates suddenly rise by 4 percent, what is the percentage change in the price of Bond Dave?

multiple choice

-24.78%

-24.76%

-32.95%

27.48%

If rates were to suddenly fall by 4 percent instead, what would the percentage change in the price of Bond Sam be then?

multiple choice

12.54%

-12.13%

14.34%

14.32%

If rates were to suddenly fall by 4 percent instead, what would the percentage change in the price of Bond Dave be then?

multiple choice

37.90%

27.48%

37.88%

-24.73%