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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 4 years to
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 19 years to maturity If interest rates suddenly rise by 4 percent, what is the percentage change in the price of Bond Sam? 0.12.18% 0.12.16% 0-13.87% 12.54% If interest rates suddenly rise by 4 percent, what is the percentage change in the price of Bond Dave? 0-38.81% O 32.75% -27.94% -27.96% If rates were to suddenly fall by 4 percent instead, what would the percentage change 4 in the price of Bond Sam be then? 12.13%
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