Question: Right now Aaa bonds yield 3% and Baa bonds yield 10%. If some bad news causes a 10% coupon rate 9 year bond to be

Right now Aaa bonds yield 3% and Baa bonds yield 10%. If some bad news causes a 10% coupon rate 9 year bond to be unexpectedly downrated from Aaa to Baa, what would be the change in the bond price?

A. -35.3%

B. -9.7%

C. -16.5%

D. -26.2%

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