Interest Rate Risk $($LO$2)$ Both Bond Sam and Bond Dave have $7\%$ 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 $2\%,$ what is the percentage change in the price of Bond Sam? Of Bond Dave? If

rates were to suddenly fall by $2\%$ instead, what would the percentage change in the

price of Bond 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? NOT IN AN EXCEL FORMAT