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Suppose that XYZ Corporation has previously issued corporate bonds, preferred stock and common stock. Now, the firm has just received a change in its bond
Suppose that XYZ Corporation has previously issued corporate bonds, preferred stock and common stock. Now, the firm has just received a change in its bond rating to AA from AAA. Will this mean that a new bond issue by the firm will pay a higher coupon rate than firms with a AAA rating for the same type of bond issue?
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