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Rating: Yield US Treasury 3.00% A 4.00% BBB 6.00% BB 10.00% 10. You begin your job as a credit analyst and decide to make your
Rating: Yield US Treasury 3.00% A 4.00% BBB 6.00% BB 10.00% 10. You begin your job as a credit analyst and decide to make your first investment. You invest in the 10 year bonds of Questrom Corporation, a BB-rated company. If your bonds pay coupons twice a year with a coupon rate of 9.0%, what is the price of one bond if the face value is $100? 11. Immediately after you purchase these bonds, Standard & Poor's decides to upgrade Questrom Corp. to a BBB-rating! What is the new price of your bonds? 12. What was the percentage change in the price of your bonds
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