Both Bond Sam and Bond Dave have 9 percent coupons, make semiannual payments, and are priced at par value. Bond Sam has 3 years to maturity, whereas Bond Dave has 10 years to maturity.

1-If interest rates suddenly rise by 3 percent, what is the percentage change in the price of Bond Sam?

multiple choice

-7.96%

7.52%

-7.38%

-7.36%

2- If interest rates suddenly rise by 3 percent, what is the percentage change in the price of Bond Dave?

multiple choice

-17.20%

-17.18%

-20.78%

18.24%

3-If rates were to suddenly fall by 3 percent instead, what would the percentage change in the price of Bond Sam be then?

multiple choice

7.52%

8.13%

8.11%

-7.33%

4- If rates were to suddenly fall by 3 percent instead, what would the percentage change in the price of Bond Dave be then?

multiple choice

-17.15%

18.24%

22.32%

22.30%