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Apple Computer Corporations debt is rated BB but bond analysts expect that an upgrade is imminent. If Apple issues 10-year notes (semi-annual coupon payments) at

  1. Apple Computer Corporations debt is rated BB but bond analysts expect that an upgrade is imminent. If Apple issues 10-year notes (semi-annual coupon payments) at par offering an 8% yield, how much will the price of each $1000 bond change if the debts credit rating increases to BBB and its yield falls to 6.5% exactly six months following the date of issue?

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