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Darnit Corporation issued 30 year bonds 5 years ago. At the time the bonds were issued, the bonds were rated A by Moodys bond rating

Darnit Corporation issued 30 year bonds 5 years ago. At the time the bonds were issued, the bonds were rated A by Moodys bond rating service. Today, Moodys upgraded its rating on the Darnit Corporation Bonds to AA. You would expect the price of the Darnit bonds to:

:

a.

To decrease since a AA rating is a lower rating than a A rating, thus indicating more risk

b.

To increase since a AA rating is a higher rating than a A rating, thus indicating less risk

c.

To remain unchanged, since the bond is already outstanding

d.

To remain unchanged, since bond ratings do not influence the price of bonds

e.

It is difficult to tell, because no information is given why the rating changed

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