Computing interest rate risk

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Computing interest rate risk

Both Bond Sam and Bond Dave have 16 percent coupons, make semi-annual payments, and are price value. Bond Sam has 6 years to maturity, whereas Bond Dave has 13 years to maturity. If interest rates 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 to 2 decimal places,e.g. 32.16.)

Reference no: EM1312796

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