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Eight Track Tape Entertainment, Inc. Just announced that they might not be able to make their upcoming bond coupon payment, and several Wall Street analysts

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Eight Track Tape Entertainment, Inc. Just announced that they might not be able to make their upcoming bond coupon payment, and several Wall Street analysts have just issued a report saying the danger of the company filling for bankruptcy is higher now that it was before the company's announcement. As a result, S&P cut their rating on these bonds from B+ to C. All else equal, which of the following is most likely to happen? Answer Bond Price will: Coupon Rate will: YTM will: A Go down Go down B Stay the same Go down Go down Stay the same D Go down Go up E Stay the same Go down Go Up Go up 36 Go up Go Up Go up Multiple Choice

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