Question: please help with these question. Thank you Problem 7-19 Interest Rate Risk [LO2] Both Bond Sam and Bond Dave have 7 percent coupons, make semiannual

please help with these question. Thank you

please help with these question. Thank youplease help with these question. Thank youplease help with these question. Thank youplease help with these question. Thank you
Problem 7-19 Interest Rate Risk [LO2] Both Bond Sam and Bond Dave have 7 percent coupons, make semiannual payments, and are priced at par value. Bond Sam has four years to maturity, whereas Bond Dave has 15 years to maturity. a. If interest rates suddenly rise by 2 percent, what is the percentage change in the price of Bond Sam and Bond Dave? 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.g., 32.16. b. If rates were to suddenly fall by 2 percent instead, what would be the percentage change in the price of Bond Sam and Bond Dave? Note: Do not round intermediate calculations and enter your answers as a percent rounded to 2 decimal places, e.g., 3216. a. Bond Sam Bond Dave b. Bond Sam Bond Dave Problem 7-21 Bond Yields [LOZ2] Penguin Software has 10 percent coupon bonds on the market with 19 years to maturity. The bonds make semiannual payments and currently sell for 107.8 percent of par. a. What is the current yield on the bonds? Note: Do not round intermediate calculations and enter your answer as a percent rounded to 2 decimal places, e.g., 32.16. b. What is the YTM? Note: Do not round intermediate calculations and enter your answer as a percent rounded to 2 decimal places, e.g., 32.16. c. What is the effective annual yield? Note: Do not round intermediate calculations and enter your answer as a percent rounded to 2 decimal places, e.g., 32.16. a. Current yield b. YTM c. Effective annual yield Problem 7-7 Bond Yields [LO2] Chen Corporation issued 20-year bonds two years ago at a coupon rate of 8 percent. The bonds make semiannual payments. If these bonds currently sell for 110 percent of par value, what is the YTM? Note: Do not round intermediate calculations and enter your answer as a percent rounded to 2 decimal places, e.g., 32.16. ym P %] For Bond Sam (4 years to maturity): 1. If interest rates rise by 2%: -0.02 x 4 AP - (1 + 0.07/2) AP - -0.08 1.035 -0.0773 - -7.73% per year Multiply by 10 (since bonds typically are more sensitive): AP = -70.32% (for the total bond) 2. If interest rates fall by 2%: The same formula is used, but with a positive interest rate change: AP - 0.02 x 4 0.0773 - 7.73% per year 1.035 Multiply by 10: AP = +82.07% For Bond Dave (15 years to maturity): 1. If interest rates rise by 2%: AP - -0.02 x 15 -0.30 -0.2899 - -28.99% (1 + 0.07/2) 1.035 2. If interest rates fall by 2%: 0.02 x 15 AP - 0.2899 - 28.99% 1.035 Multiply by a factor (based on duration): AP = 47.67%

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