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A $ 1 0 0 0 face value corporate bond with a 6 . 7 5 percent coupon ( paid semiannually ) has 2 0
A $ face value corporate bond with a percent coupon paid semiannually has years left to maturity. It has had a credit rating of BB and a yield to maturity of percent. The firm recently became more financially stable and the rating agency is upgrading the bonds to BBB The new appropriate discount rate will be percent. What will be the change in the bonds price in dollars and percentage terms?
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