Question: Both Bond Sam and Bond Dave have 9 . 4 percent coupons, make semiannual peyments, and are priced at par value. Bond Sam has 5

Both Bond Sam and Bond Dave have 9.4 percent coupons, make semiannual peyments, and are priced at par value. Bond Sam has 5 years to maturity, whereas Bond Dave has 22 years to maturity. Both bonds heve is par vabue of 4000.
a. If inberest rabes suddenly rise by 2 percent, what is the percentage change in the price of these bonds?
Note: A negative answer shovid be indicated by a minus sign. De not round intermediate calculations and anter your avsoers as a percent rounded to 2 decimal places, e.g.32.15.
b. If rates were to suddenty fall by 2 percent inshead, what would be the percentape change in the pice of these bonact?
Noter Do not round intermediatp catculations and eeller your answer as a percent rounded le 2 decimal places, a is. i2 sc
\table[[,Bond Sem,Bond Bave],[2. Percertage change in price,5,5],[b. Percertape chavge in price,5,5]]
Both Bond Sam and Bond Dave have 9 . 4 percent

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