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Problem 5. ABC bonds are 10 year, 14%.coupon bonds and currently have a rating of BB. You expect big changes for the company over the

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Problem 5. ABC bonds are 10 year, 14%.coupon bonds and currently have a rating of BB. You expect big changes for the company over the need year, and you are certain that exactly one year from now the bonds will be rated Be Use the table below to estimate your 1-year return if you buy the bonds today and tell them one year from now Rating AA A Average YTM 4.50% 5.00% 6.00% 8.50% BBB BB B 9.50% Put your answer here

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