5. Moodys recently downgraded XYZs bonds from Aaa to C. What impact would you expect this to...

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5. Moody’s recently downgraded XYZ’s bonds from Aaa to C. What impact would you expect this to have on

(a) the price of XYZ’s bonds,

(b) the interest rate XYZ must pay for additional loanable funds, and

(c) the default premium paid by XYZ?

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