Both Bond Sam and Bond Dave have 8 percent coupons, make
semiannual payments, and are priced at par value. Bond Sam has 4
years to maturity, whereas Bond Dave has 12 years to maturity.
If interest rates suddenly rise by 4 percent, what is the
percentage change in the price of Bond Sam? -12.42%, 12.78%,
-12.40% ,-14.18%
If interest rates suddenly rise by 4 percent, what is the
percentage change in the price of Bond Dave? -25.10%, -25.08%
,27.45% ,-33.51%...