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[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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