Both Bond Sam and Bond Dave have 10 percent coupons, make semiannual payments, and are...
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Finance
Both Bond Sam and Bond Dave have 10 percent coupons, make semiannual payments, and are priced at par value. Bond Sam has 3 years to maturity, whereas Bond Dave has 17 years to maturity. (Do not round your intermediate calculations.) Requirement 1: (a) If interest rates suddenly rise by 4 percent, what is the percentage change in the price of Bond Sam? (Click to select) 4 (b) If interest rates suddenly rise by 4 percent, what is the percentage change in the price of Bond Dave? (Click to select) A Requirement 2: (a) If rates were to suddenly fall by 4 percent instead, what would the percentage change in the price of Bond Sam be then? (Click to select) A (b) If rates were to suddenly fall by 4 percent instead, what would the percentage change in the price of Bond Dave be then? (Click to select)+
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