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Both Bond Sam and Bond Dave have 7 percent coupons, make semiannual payments, and are...

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Finance

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Both Bond Sam and Bond Dave have 7 percent coupons, make semiannual payments, and are priced at par value. Bond Sam has 2 years to maturity, whereas Bond Dave has 20 years to maturity. If Interest rates suddenly rise by 3 percent, what is the percentage change in the price of Bond Sam? -5.62% -5.32% -5.30% O 5.40% If Interest rates suddenly rise by 3 percent, what is the percentage change in the price of Bond Dave? -25.74% 29.09% 0-25.72% -34.66% If rates were to suddenly fall by 3 percent Instead, what would the percentage change In the price of Bond Sam be then? 5.40% 5.69% O 5.71% O-5.27% If rates were to suddenly fall by 3 percent Instead, what would the percentage change In the price of Bond Dave be then? 41.01% -25.69% O 29.09% O 41.03%

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