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Question 5 10 pts A corporate bond with a 5 percent coupon has 10 years left to maturity. It has a credit rating of BBB
Question 5 10 pts A corporate bond with a 5 percent coupon has 10 years left to maturity. It has a credit rating of BBB and a yield to maturity of 8.0 percent. Recently, the firm has gotten into some trouble and the rating agency is downgrading the firm's bonds to BB. The new appropriate discount rate will be 9 percent. What will be the change in the bond's price, in dollars? Assume interest payments are paid semi-annually and par value is $1,000. (Round your answer to 2 decimal places. Do not include a dollar sign. If the price decreases, use a negative sign. If the price increases, use a "+" sign.)
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