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Can someone help me with this question? it's one question but has multiple parts. Both Bond Sam and Bond Dave have 8 percent coupons, make
Can someone help me with this question? it's one question but has multiple parts.
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 14 years to maturity. If interest rates suddenly rise by 2 percent, what is the percentage change in the price of Bond Sam? 5.14% -5.35% -5.06% 05.08% If interest rates suddenly rise by 2 percent, what is the percentage change in the price of Bond Dave? -14.88% 15.80% -14.90% -17.51% Ifrates were to suddenly fall by 2 percent instead, what would the percentage change in the price of Bond Sam be then? 5.42% 0-5.03% 5.40% 5.14% Ifrates were to suddenly fall by 2 percent instead, what would the percentage change in the price of Bond Dave be then? 18.76% 15.80% -14.85% 18.74%Step by Step Solution
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