Question: 8,9,10 please no excel 8. Both Bond Sam and Bond Dave have 10 percent coupons, make semiannual payments, and are priced at par value. Bond

8,9,10 please no excel
8,9,10 please no excel 8. Both Bond Sam and Bond
8. Both Bond Sam and Bond Dave have 10 percent coupons, make semiannual payments, and are priced at par value. Bond Sam has 5 years to maturity, whereas Bond Dave has 20 years to maturity. If interest rates suddenly rise by 2 percent, what is the percentage change in the price of Bond Sam? Of Bond Dave? If the rates were to suddenly fall by 2 percent instead, what would the percentage change in the price of Bond Sam be then? Of Bond Dave? Illustrate your answers by graphing bond prices versus YTM. What does this problem tell you about interest rate risk of longer- term bonds? Make sure to show your work. 9. Bond J is a 6 percent coupon bond. Bond K is a 12 percent coupon bond. Both bonds have 8 years to maturity, make semiannual payments, and have a YTM of 7 percent. If the interest rates suddenly rise by 2 percent, what is the percentage price change of these bonds? What if interest rates suddenly fall by 2 percent instead? What does this 3 problem tell you about interest rate risk of lower-coupon bonds? Make sure to show your work. 10. Provide a recent yield curve. Make sure to provide the date and source for the yield curve. Describe and explain its shape using the concepts learned in class

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