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5. A bond is downgraded from BBB to BB. The price of the bond is going to... ..... and the yield on the bond is
5. A bond is downgraded from BBB to BB. The price of the bond is going to... ..... and the yield on the bond is going to increase/decrease 6A. You can continue to use your less efficient machine at a cost of $20,000 annually for the next five years. Alternatively, you can purchase a 5-year more efficient machine for $30,000 plus $10,000 annual maintenance. At a cost of capital of 15%, The EAC of the new machine will be ... ......... than that of the old machine by $.... greater/lower
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