Both Bond Sam and Bond Dave have 6 percent coupons, make semiannual payments, and are priced at

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Question:

Both Bond Sam and Bond Dave have

6

percent coupons, make semiannual payments, and are priced at par value. Bond Sam has three 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 and Bond Dave?

Posted Date: May 18, 2024 11:07 AM

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Both Bond Sam and Bond Dave have 6 percent coupons, make semiannual payments, and are priced at

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