5. (20 Points) Both Bond Sam and Bond Dave have 7 percent co…
5. (20 Points) Both Bond Sam and Bond Dave have 7 percent coupons, make semi-annual payments. and are priced at par value. Bond Sam has 3 years to maturity, whereas Bond Dave has 20 years to maturity. If interest rates suddenly fall by 2 percent, what would the percentage change i n the price of Bond Sam be then? Of Bond Dave?
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