Calculate the change in the bond price

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Question - A $1,000 face value corporate bond with a 6.75 percent coupon (paid semiannually) has 10 years left to maturity. It has had a credit rating of BB and a yield to maturity of 8.2 percent. The firm recently became more financially stable and the rating agency is upgrading the bond to BBB. The new appropriate yield to maturity will be 7.1 percent. Calculate the change in the bond's price in dollar and percentage terms.

Reference no: EM132976842

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