Question: excel form Both Bond Sam and Bond Dave have 6.5 percent coupons, make semiannual payments, and are priced at par value. Bond Sam has 3



Both Bond Sam and Bond Dave have 6.5 percent coupons, make semiannual payments, and are priced at par value. Bond Sam has 3 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 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? All bond price answers should be dollar prices. Complete the following analysis. Do not hard code values in your calculations. Leave the "Basis" input blank in the function. All bond prices should be in dollars. You must use the built-in Excel function to answer the bond price questions. Price if YTM increases: Price of Bond Sam Price of Bond Dave % change in Bond Sam % change in Bond Dave Price if YTM decreases: Price of Bond Sam Price of Bond Dave % change in Bond Sam % change in Bond Dave \begin{tabular}{|l|c|c|} \hline & A & B \\ \hline 28 & Price at current YTM: \\ \hline 29 & Price of Bond Sam \\ \hline 30 & Price of Bond Dave \\ \hline 31 & Price if YTM increases: \\ \hline 32 & Price of Bond Sam \\ \hline 33 & Price of Bond Dave \\ \hline 34 & \% change in Bond Sam \\ \hline 35 & \% change in Bond Dave \\ \hline 36 & Price if YTM decreases: \\ \hline 37 & Price of Bond Sam \\ \hline 38 & Price of Bond Dave \\ \hline 39 & \% change in Bond Sam \\ \hline 40 & \\ \hline 41 & \\ 42 & 43 & \\ \hline 44 & \\ 45 & 46 & \\ \hline 47 & 48 & Change in Bond Dave \\ \hline 49 & \end{tabular}
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