Question: Hello please i need this question. Thanks Both Bond Sam and Bond Dave have 11.2 percent coupons, make semiannual payments, and are priced ot pat
Both Bond Sam and Bond Dave have 11.2 percent coupons, make semiannual payments, and are priced ot pat value. Bond Sami has 4 years to maturity, whereas Bond Dave has 21 years to maturity. Both bonds have a par value of 1,000 . a. If interest rates suddenly rise by 3 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 2 decimal places, e.9., 32.16. b. If rates were to suddenly fall by 3 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 2 decimal places, e.9. 32.16
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