Homework 7: Chapter VII O Help Save & E Submit 7 Check my work S07-19 Interest Rate Risk (LO2) 8.33 Both Bond Sam and Bond Dave have 71 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? (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.g. 32,16.) Oos 0 Percentage change in proof Bond Sam Percentage change in price of Bond Dave 550 Q: A If rates were to suddenly fall by 2 percent Instead, what would be the percentage change in the price of Bond Sam and Blond Dave? (Do not round Intermediate calculations and enter your answers as a percent rounded to 2 decimal places, 0.9. 32.16) Percentage change price of Bond Sam Percentage change in price of Bande