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Problem 619 Interest Rate Risk [LO 2] Both Bond Sam and Bond Dave have 92 percent coupons, make semiannual payments, and are priced at par

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Problem 619 Interest Rate Risk [LO 2] Both Bond Sam and Bond Dave have 92 percent coupons, make semiannual payments, and are priced at par value. Bond Sam has 4 years to maturity, whereas Bond Dave has 21 years to maturity. Both bonds have a par value of 1,000. B. If interest rates suddenly rise by 3 percent, what is the percentage change in the price of these bonds? Note: A negative onswer should be indicated by a minus sign. Do not round intermediate colculations and enter your answers os a percent rounded to 2 decimal places, e.9. 3216. b. If rates were to suddenly fall by 3 percent instead, what would be the percentage change in the price of these bonds? Note: Do not round intermediate calculations and enter your answer as a percent rounded to 2 decimal ploces, e.9. 32.16

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