## [answered] Both Bond Sam and Bond Dave have 7 percent coupons, make se

 Both Bond Sam and Bond Dave have 7 percent coupons, make semiannual payments, and are priced at par value. Bond Sam has 4 years to maturity, whereas Bond Dave has 18 years to maturity.?(Do not round your intermediate calculations.)

 Requirement 1:
 (a) If interest rates suddenly rise by 3 percent, what is the percentage change in the price of Bond Sam? ? ??? ? (Click to select)-9.67%-10.74%-9.69%11.01%9.90%
 (b) If interest rates suddenly rise by 3 percent, what is the percentage change in the price of Bond Dave? ? ??? ? (Click to select)-33.01%-24.82%38.25%-24.80%27.66%
 Requirement 2:
 (a) If rates were to suddenly fall by 3 percent instead, what would the percentage change in the price of Bond Sam be then? ? ??? ? (Click to select)-9.64%10.97%11.04%9.90%10.99%
 (b) If rates were to suddenly fall by 3 percent instead, what would the percentage change in the price of Bond Dave be then? ?

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This question was answered on: Sep 18, 2020

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