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After negative news about the corporations A earnings, its credit rating was reduced from Aaa to Baa. As a result, the price of its ten-year
After negative news about the corporations A earnings, its credit rating was reduced from Aaa to Baa. As a result, the price of its ten-year bond with face value of $1,000, coupon rate of 10% and semiannual payments, dropped from $1,000 to $900. Compute this bonds yield to maturity before and after the downgrade.
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