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Both Bond Sam and Bond Dave have 9 percent coupons, make semiannual payments, and are priced at par value. Bond Sam has 2 years to
Both Bond Sam and Bond Dave have 9 percent coupons, make semiannual payments, and are priced at par value. Bond Sam has 2 years to maturity. whereas Bond Dave has 15 years to maturity. If interest rates suddenly rise by 3 percent, what is the percentage change in the price of Bond Sam? -5.20% -5.18% 0-5.48% O 5.28% If interest rates suddenly rise by 3 percent, what is the percentage change in the price of Bond Dave? -20.63% -20.65% O 22.7295 -26.02% If rates were to suddenly fall by 3 percent instead, what would the percentage change in the price of Bond Sam be then? 5.28% O 5.58% O 5.56% O-5.15% If rates were to suddenly fall by 3 percent instead, what would the percentage change in the price of Bond Dave be then? 29.40% 0 -20.60% O 22.72% O 29.38%
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