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A corporate bond with a 4.0 percent coupon has 10 years left to maturity. It has had a credit rating of A and a yield

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A corporate bond with a 4.0 percent coupon has 10 years left to maturity. It has had a credit rating of A and a yield to maturity of 6 percent. The firm has recently gotten into some trouble and the rating agency is downgrading the bonds to BBB. The new appropriate discount rate will be 7 percent. What will be the change in the bond's price in dollars? Assume interest payments are pald annually and par value is $1,000. Hint: Estimate the first price, estimate the second price, and take the difference. $69.19 559.22 561.25 563.51

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