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Both Bond Sam and Bond Dave have 10 percent coupons, make semiannual payments, and are priced...

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 19 years to maturity.

   

If interest rates suddenly rise by 4 percent, what is the percentage change in the price of Bond Sam?
If interest rates suddenly rise by 4 percent, what is the percentage change in the price of Bond Dave?

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jeff jeffy answered 1 year ago
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