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A corporate bond with a 6.25% coupon has 13 years left to maturity. It has had a credit rating of BB and a yield to
| A corporate bond with a 6.25% coupon has 13 years left to maturity. It has had a credit rating of BB and a yield to maturity of 7.50%. The firm's financial performance and outlook has improved significantly over the past year and the rating agency is upgrading the bonds to BBB today. The new appropriate discount rate reflecting this credit rating upgrade will be 7.00%. What will be the net change in the bond price as a result of this upgrade? |
| A. | $897.33 increase | |
| B. | No change to current day market price of the bond | |
| C. | Insufficient information is provided to calculate this answer | |
| D. | $936.66 decrease | |
| E. | $39.33 decrease | |
| F. | $897.33 decrease | |
| G. | $39.33 increase | |
| H. | $936.66 increase |
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Profit First For Lawn Care And Landscape Businesses
Authors: Christeen Era, Steven A Rigolosi, Mike Michalowicz
1st Edition
0578908158, 978-0578908151
