What is the percentage change in the price

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Reference no: EM13303345

Both Bond Sam and Bond Dave have 9 percent coupons making semiannual 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 rise by 2 percent, what is the percentage change in the price of Bond Sam? Of Bond Dave? Illustrate your answers by graphing bond prices versus YTM.

Reference no: EM13303345

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