Question
A corporate bond with a 7.700 percent coupon has eleven years left to maturity. It has had a credit rating of BB and a yield
A corporate bond with a 7.700 percent coupon has eleven years left to maturity. It has had a credit rating of BB and a yield to maturity of 10.1 percent. The firm has recently become more financially stable and the rating agency is upgrading the bonds to BBB. The new appropriate discount rate will be 9.0 percent.
| What would be the total return of the bond in dollars? What would be the total return of the bond in percentage? |
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The Engineers Cost Handbook Tools For Managing Project Costs
Authors: Richard E. Westney
1st Edition
0824797965, 978-0824797966
