Nicktoons is contemplating the purchase of a large portion of the assets of Hulu (Nicktoons would be primarily buying Hulus movie and television production businesses). If Nicktoons undertakes the transaction, Nicktoons would pay $100 billion of cash to Hulu tomorrow and would raise that cash tomorrow by taking on new debt of $100 billion.

You are an investment advisor and you know that one of your large clients owns a Nicktoon's bond. Your client asks you to estimate how Nicktoons purchase of the Hulu assets would likely affect the value of Nicktoons bonds.

You know that your client owns a Nicktoons bond that has a 4.50% annual coupon rate, has 10 years to maturity, and has a face value of $1,000. This bonds yield to maturity is 4% and its credit rating is A. If Nicktoons does the transaction (and issues the new debt), the credit rating agencies estimate that the Nicktoons bond rating will change to BBB and the spread on the Nicktoons bond will widen by 100 basis points.

Calculate the change in the value of the Nicktoons bond if the transaction is undertaken.