Homework Assignment #$3$ Bond Pricing

Both Bond Sam and Bond Dave have $6\mathrm{.}5$ percent coupons, make semiannual payments, and are priced at par value. Bond Sam has $3$ years to matarity, 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 Boed Sam be then? Of Bond Dave? Illustrate your answers by graphing bond prices versus YTM$.$ What does this problem tell you about the interest rate risk of longer$-$term bonds?

$Dm=\frac{D}{1\frac{0\mathrm{.}065}{2}}$

Bond Sam DM$-$

$2.$ Bond J has a coupon rate of $3$ percent. Boed K has a coupon rate of $9$ percent. Both bonds have $19$ years to maturity, make semiannual payments, and have a YTM of $6$ percent. If interest rates suddenly rise by $2$ percent, what is the percentage price change of these bonds? What if rates suddenly fall by $2$ percent instead? What does this problem tell you about the interest rate risk of lower$-$coupon boeds? Please make the work for the answers simple so i am write it down on paper