Both Bond Sam and Bond Dave have 8 percent coupons, make semiannual payments, and are...
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Finance
Both Bond Sam and Bond Dave have 8 percent coupons, make semiannual payments, and are priced at par value. Bond Sam has 3 years to maturity, whereas Bond Dave has 13 years to maturity. If interest rates suddenly rise by 2 percent, what is the percentage change in the price of Bond Sam? O 5.14% O-5.06% O-5.35% 0.5.08% If interest rates suddenly rise by 2 percent, what is the percentage change in the price of Bond Dave? 15.17% -16.79% -14.36% 0 -14.38% If rates were to suddenly fall by 2 percent instead, what would the percentage change in the price of Bond Sam be then? 0-5.03% O 5.14% 5.42% O 5.40% If rates were to suddenly fall by 2 percent instead, what would the percentage change in the price of Bond Dave be then? -14.33% 17.86% 15.17% O 17.88%
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