Question 52 pts

A fixed rate corporate bond is upgraded from AA to AAA. Which of the following statements is true?

Coupon rate increases

YTM increases

Current yield increases

Bond price increases

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Question 61 pts

ABC Corp. issued a corporate bond with a face value of $1000. The coupon rate is 6% and the yield to maturity is 5%. The price of the bond should be:

Less than $1000

Not enough information

Equal to $1000

More than $1000