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two parts Calculate the price of the following corporate bond with a credit rating of BBB+ / Baa+: $1,000 par value, 8% semi-annual pay coupon,
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Calculate the price of the following corporate bond with a credit rating of BBB+ / Baa+: $1,000 par value, 8% semi-annual pay coupon, 8.40% yield to maturity, and 5 years to maturity. 983.94 Assume that the next morning, the bond credit rating changes to A-/A-, and the new yield to maturity becomes 8.2%. What is the price of the bond after this change? [From the prior problem: Calculate the price of the following corporate bond with a credit rating of BBB+/Baa+: $1000 par value, 8% semi-annual pay coupon, 8.40% yield to maturity, and 5 years to maturity.) Step by Step Solution
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