Both Bond Bill and Bond Ted have 7 percent coupons make semiannual payments and are priced at par value. Bond Bill has 3 years to maturity
whereas Bond Ted has 20 years to maturity.
If interest rates suddenly rise by 2 percent what is the percentage change in the price of these bonds? (Do not round intermediate calculations. Negative amounts should be indicated by a minus sign. Round your answers to 2 decimal places
(e.g. 32.16).)
If rates were to suddenly fall by 2 percent instead what would be the percentage change in the price of these bonds? (Do not round intermediate calculations. Round your answers to 2 decimal places (e.g. 32.16).)