Question: Mango Inc. is going to issue a 2 5 - year bond with a coupon rate of 7 . 5 0 % ( with 6

Mango Inc. is going to issue a 25-year bond with a coupon rate of 7.50%(with 6 coupon payments per year) and a face value of $1,000. Mango Inc. believes it can be rated A by Standard and Poor's. However, because of recent financial difficulties at the company, Standard and Poor's is warning that it may downgrade Mango Inc. Industries bonds to BBB. Yields on A-rated, long-term bonds are currently 3.00%(quoted as an annual percentage rate (APR)), and yields on BBB-rated bonds are 7.00%(quoted as APR). What is the % change in the price of the bond if it is downgraded?Instructions: Round the result to two decimal places and do not put the "%" symbol in the answer box. For example if you get a result of -7.5432% then write -7.54 in the answer box below.

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