Solution-Bond price in dollars and percentage terms

Bond price in dollars and percentage terms

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Reference no: EM131238451

A corporate bond with a 6.75 percent coupon has ten years left to maturity. It has had a credit rating of BB and a yield to maturity of 8.2 percent. The firm has recently become more financially stable and the rating agency is upgrading the bonds to BBB. The new appropriate discount rate will be 7.1 percent. What will be the change in the bond's price in dollars and percentage terms?

Reference no: EM131238451

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Bond price in dollars and percentage terms

Reference no: EM131238451

Reference no: EM131238451

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