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A corporate bond with a 4.0% annual coupon has 18 years left to maturity. It has had a credit rating of BBB and a yield
A corporate bond with a 4.0% annual coupon has 18 years left to maturity. It has
had a credit rating of BBB and a yield to maturity of 6.4%, The firm has recently
Improved its financial position and the rating agency is upgrading the bands to A-. The new appropriate discount rate will be 4.8%. What will be the bond's change in price in dollars?
A. An increase of $144.77 B. An increase of $160.23 C. A decrease of $144.77 D. A decrease of $160.23
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