Question: Q 0 1 a ) Both Bond Sam and Bond Dave have 3 percent coupons, make semiannual payments, and are priced at par value. Bond

Q01 a)
Both Bond Sam and Bond Dave have 3 percent coupons, make semiannual payments, and are priced at par value. Bond Sam has 4 years to maturity, whereas Bond Dave has 8 years to maturity.
a) If interest rates suddenly rise by 1% point, what is the percentage change in the price of Bond Sam?
Answer:
Q01 a) Both Bond Sam and Bond Dave have 3 percent

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