What will be the change in the bonds price in dollars

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A corporate bond with a 7.150 percent coupon has twelve years left to maturity. It has had a credit rating of BB and a yield to maturity of 9.0 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 7.9 percent.

What will be the change in the bond’s price in dollars? (Assume interest payments are semiannual.) (Do not round intermediate calculations. Round your final answer to 2 decimal places.)

Change in bond price $   

What will be the change in the percentage terms? (Do not round intermediate calculations. Round your final answer to 2 decimal places.)

Change in bond percent %

Reference no: EM131304718

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