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A $1,000 face value corporate bond with a 7.4 percent coupon (paid annually) has 4 years left to maturity. It has had a credit rating
A $1,000 face value corporate bond with a 7.4 percent coupon (paid annually) has 4 years left to maturity. It has had a credit rating of BBB and a yield to maturity of 10 percent. The firm recently became more financially stable and the rating agency is upgrading the bonds to A. The new appropriate discount rate will be 8 percent. What will be the change in the bonds price in percentage terms? PRESENT YOUR ANSWER AS PERCENTAGE ROUNDED TO ZERO DECIMAL PLACES, BUT DON'T WRITE THE PERCENTAGE SYMBOL. EXAMPLE IS YOUR ANSWER IS 14%, JUST WRITE 14
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