Question
Currently XYC Corporation's 30 year bonds have a price of $980 and YTM of 6.5%. The bonds just got downgraded and YTM increased to 6.9%.
Currently XYC Corporation's 30 year bonds have a price of $980 and YTM of 6.5%. The bonds just got downgraded and YTM increased to 6.9%. How will the price change?
| Decreases | ||
| Increases | ||
| Stays the same | ||
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Advanced Financial Risk Management Enterprise Wide Risk Management In Theory And Practice
Authors: Donald Van Deventer, Kenji Imai, Mark Mesler
3rd Edition
1547416157, 9781547416158
