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A corporate bond with a coupon rate of 8 . 1 percent has 1 3 years left to maturity. It has had a credit raring

A corporate bond with a coupon rate of 8.1 percent has 13 years left to maturity. It has had a credit raring of BBB ans a yield to maturity of 8.8 percent. The firm has recently gotten into some trouble and the rating agency is downgrading the bonds to BB. The new appropriate discount rate will be 10.1 percent. (Assume interest payments are semiannual.)

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