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QUESTION
Both Bond Sam and Bond Dave have 10 percent coupons, make semiannual payments, and are priced at par value. Bond Sam has 5 years to maturity,...
Both Bond Sam and Bond Dave have 10 percent coupons, make semiannual payments, and are priced at par value. Bond Sam has 5 years to maturity, wheareas Bond Dave has 14 years to maturity. If interest rates suddenly fall by 1 percent, the percentage change in the price of Bonds Sam and Dave is percent and percent, respectively.
