Question: Right now Aaa binds yield 5% and Baa bonds yield 9%. If some bad news causes a 10% coupon rate 18 year bond to be

Right now Aaa binds yield 5% and Baa bonds yield 9%. If some bad news causes a 10% coupon rate 18 year bond to be unexpectedly downrated from Aaa to Baa what would be the change in the bond price?

-0.6%

-31.4%

-25.9%

-16.7%

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