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A bond's credit rating provides a guide to its price. In the fall of 2017 Aaabonds yielded 3.6% and Baa bonds yielded 4.3%. If some

A bond's credit rating provides a guide to its price. In the fall of 2017 Aaabonds yielded 3.6% and Baa bonds yielded 4.3%. If some bad news causes a 10% five-yearbond to be unexpectedly downrated from Aaa to Baa, what would be the effect on the bondprice? (Assume annual coupons.)

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