Question: Assume that there is a sudden shift in the yield curve such that the new yield curve is higher and more steeply sloped today than

Assume that there is a sudden shift in the yield curve such that the new yield curve is higher and more steeply sloped today than it was yesterday. If a firm issues new bonds today, would its bonds sell for higher or lower prices than if it had issued the bonds yesterday? Please substantiate your answer.

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