In: Finance
Both Bond Sam and Bond Dave have 10 percent coupons, make semiannual payments, and are priced at par value. Bond Sam has 4 years to maturity, whereas Bond Dave has 17 years to maturity. |
If interest rates suddenly rise by 3 percent, what is the percentage change in the price of Bond Sam? | |
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If interest rates suddenly rise by 3 percent, what is the percentage change in the price of Bond Dave? | |
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If rates were to suddenly fall by 3 percent instead, what would the percentage change in the price of Bond Sam be then? |
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If rates were to suddenly fall by 3 percent instead, what would the percentage change in the price of Bond Dave be then? |
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