What will be the change in the bonds price in dollars

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Reference no: EM13333155

A $1,000 face value corporate bond with a 6.75% coupon (paid semi annually) has 10 years left to maturity. It had a credit rating of BB and a yield maturity of 8.2%. The firm recently became more financially stable and the rating agency is upgrading the bonds to BBB. The new appropriate discount rate will be 7.1%. What will be the change in the bond's price in dollars and percentage terms?

Reference no: EM13333155

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