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A $1,000 face value corporate bond with a coupon rate has 15 years left to maturity. It is currently selling for $936.43. The firm has
A $1,000 face value corporate bond with a coupon rate has 15 years left to maturity. It is currently selling for $936.43. The firm has recently gotten into trouble and the rating agency is downgrading the bonds to BB. The YTM will increase 75 basis points to reflect this rating change. What will be the (actual) change in the bond's price in percentage terms?
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