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A corporate bond with a 5 . 7 5 percent coupon has 2 0 years left to maturity. It has had a credit rating of
A corporate bond with a percent coupon has years left to maturity. It has had a credit rating of BB and a yield to maturity of percent. The firm has recently gotten more financially stable and the rating agency is upgrading the bonds to BBB The new appropriate discount rate will be percent. What will be the change in the bond's price in dollars? Assume interest payments are paid semiannually and a par value of $Group of answer choicesdecrease $increase $decrease $increase $None of these are correct.
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