a.) A $2,000 face value corporate bond with a 5.9 percent coupon (paid semiannually) has 13 years left to maturity. It has had a credit rating of BBB and a yield to maturity of 6.4 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 7.5 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 answers to 3 decimal places. (e.g., 32.161))

Change in bond price in dollars = $_______

Change in bonds price in percentage = _____%

b.) A $2,000 face value corporate bond with a 5.30 percent coupon (paid semiannually) has 12 years left to maturity. It has had a credit rating of BB and a yield to maturity of 7.4 percent. The firm recently became more financially stable and the rating agency is upgrading the bonds to BBB. The new appropriate discount rate will be 6.5 percent. What will be the change in the bonds price in dollars and percentage terms? (Round your answers to 3 decimal places. (e.g., 32.161))

Change in bond price in dollars = $_______

Change in bonds price in percentage = _____%