Four years ago Xpress-Oh issued a GBP250 million 10-year 5.25% semi-annual bond to help fund the original factory. The company achieved a rating of BBB- from Standard & Poors and the instrument has a YTM of 7%. Calculate the current bond price.

The bond price calculated for that is 228.86 million.

Now the question I want the answer for is - How would the bond price calculated above change if Xpress-Oh published a profit warning today, stating that the full-year results would be a large loss instead of a healthy profit as expected? Explain verbally, clearly, and in detail how this would affect the pertinent variables in your calculation in part above.