Question
A 5-year 5% BB-rated corporate bonds yield to maturity is 4%. What is the price of the bond? If the bond gets upgraded to AA-,
A 5-year 5% BB-rated corporate bonds yield to maturity is 4%. What is the price of the bond? If the bond gets upgraded to AA-, will its yield likely be lower or higher than 4% and lower or higher than 5%? Will the price be likely to go up or down?
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Essentials Of Managerial Finance
Authors: Scott Besley, Eugene F. Brigham
13th Edition
0324258755, 9780324258752
