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Both Bond Sam and Bond Dave have 8 percent coupons...

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Both Bond Sam and Bond Dave have 8 percent coupons, make semiannual payments, and are priced at par value. Bond Sam has 2 years to maturity, whereas Bond Dave has 12 years to maturity. (a) If interest rates suddenly rise by 3 percent, what is the percentage change in the price of Bond Sam?

 

Paper#10147 | Written in 18-Jul-2015

Price : $25
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