Question: Both Bond Sam and Bond Dave have 1 0 . 2 percent coupons, make semiannual payments, and are priced at par value. Bond Sam has
Both Bond Sam and Bond Dave have percent coupons, make semiannual payments, and are priced at par value. Bond Sam has years to maturity, whereas Bond Dave has years to maturity. Both bonds have a par value of
a If interest rates suddenly rise by 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 decimal places, eg
b If rates were to suddenly fall by 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 decimal places, eg
tableBond Sam,Bond Davea Percentage change in price,,
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