Question: A $ 2 , 9 0 0 face value corporate bond with a 6 . 8 percent coupon ( paid semiannually ) has 1 2
A $ face value corporate bond with a percent coupon paid semiannually has years left to maturity. It has had a credit rating of BBB and a yield to maturity of percent. The firm has recently gotten into some trouble and the rating agency is downgrading the bonds to BB The new appropriate discount rate will be percent. What will be the change in the bonds price in dollars and percentage terms? Negative values should be indicated by a minus sign. Do not round intermediate calculations. Round your percentage answers to decimal places. eg
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