Twice Lucky, Inc. was planning a 10-year bond issue with a 6% coupon rate. Just prior to

Question:

Twice Lucky, Inc. was planning a 10-year bond issue with a 6% coupon rate. Just prior to the issue, a major credit rating agency announced a surprise upgrade in its rating. How might this announcement impact the planned bond issue? Explain.

Coupon
A coupon or coupon payment is the annual interest rate paid on a bond, expressed as a percentage of the face value and paid from issue date until maturity. Coupons are usually referred to in terms of the coupon rate (the sum of coupons paid in a...