Both Bond Sam and Bond Dave have 10.6 percent coupons, make semiannual payments, and are priced at par value. Bond Sam h

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Both Bond Sam And Bond Dave Have 10 6 Percent Coupons Make Semiannual Payments And Are Priced At Par Value Bond Sam H 1 (114.91 KiB) Viewed 13 times

Both Bond Sam and Bond Dave have 10.6 percent coupons, make semiannual payments, and are priced at par value. Bond Sam has 6 years to maturity, whereas Bond Dave has 23 years to maturity. Both bonds have a par value of 1,000. a. If interest rates suddenly rise by 2 percent, what is the percentage change in the price of these bonds? Note: A negative answer should be indicated by a minus sign. Do not round intermediate calculations and enter your answers as a percent rounded to 2 decimal places, e.g., 32.16. b. If rates were to suddenly fall by 2 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 places, e.g., 32.16. a. Percentage change in price b. Percentage change in price Bond Sam % % Bond Dave % %