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A 5 - year 4 % A - rated corporate bond s yield to maturity is 6 % . QuotedPrice = # 1 3 The

A $5 -$ year $4 %$ A $-$ rated corporate bonds yield to maturity is $6 % .$ QuotedPrice $=$ # $13$

The bond gets downgraded to BB $- .$ Its yield is likely to be # $14$ than $4 %$ and # $15$ than $6 %,$ and the price is likely to be # $16$ than the original Quoted Price

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Question

A 5 - year 4 % A - rated corporate bond s yield to maturity is 6 % . QuotedPrice = # 1 3 The

A 5-year 4% A-rated corporate bonds yield to maturity is 6%. QuotedPrice = #13 The bond gets downgraded to BB-. Its yield is likely to be #14 than 4% and #15 than 6%, and the price is likely to be #16 than the original Quoted Price

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Get Instant Access with AI-Powered Solutions

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A $5 -$ year $4 %$ A $-$ rated corporate bonds yield to maturity is $6 % .$ QuotedPrice $=$ # $13$

The bond gets downgraded to BB $- .$ Its yield is likely to be # $14$ than $4 %$ and # $15$ than $6 %,$ and the price is likely to be # $16$ than the original Quoted Price