S. 34 Interest rate risk Excel 2 FILE HOME INSERT PAGE LAYOUT FORMULAS DATA REVIEW 6 x Sign In in VIEW 19 Anal A 11 Paste BTU 2.5 points % A Alignment Number Conditional Formatos Cell Formatting Table Styles Styles Cells Editing Clipboard Font Skipped D29 > esum B D E F G H I J K L M 1 2 eBook References Both Bond Sam and Bond Dave have 6.5 percent coupons, make semiannual payments, and are priced at par value. Bond Sam has 3 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? Of Bond Dave? If rates were to suddenly fall by 2 percent instead, what would the percentage change in the price of Bond Sam be then? Of Bond Dave? All bond price answers should be dollar prices 4 5 6 7 8 Bond Sam Coupon rate Settlement date Maturity date Redemption (% of par) # of coupons per year 6.5% 1/1/2000 1/1/2003 100 2 9 10 11 12 13 14 15 16 Bond Dave: Coupon rate Settlement date Maturity date 6.5% 1/1/2000 1/1/2020