Calculation of bond price and interest rate risk both bond

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Calculation of Bond price and Interest Rate risk .

Both Bond Sam and Bond Dave have 16 percent coupons, make semiannual payments, and are pricing value. Bond Sam has 6 years to maturity, whereas Bond Dave has 13 years to maturity. If interest rates will fall by 3 percent, the percentage change in the price of Bonds Sam and Dave is _____ percent and _____ percent respectively. (Negative amount should be indicated with a minus sign. Do not include the percent sign (%). Round your answers to2 decimal places, e.g. 32.16.)

Reference no: EM13356328

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