What will be the change in the percentage terms

Reference no: EM13258489

A corporate bond with a 7.100 percent coupon has eleven years left to maturity. It has had a credit rating of BB and a yield to maturity of 8.9 percent. The firm has recently become more financially stable and the rating agency is upgrading the bonds to BBB. The new appropriate discount rate will be 7.8 percent.

What will be the change in the bond's price in dollars?

What will be the change in the percentage terms?

Reference no: EM13258489

Questions Cloud

What are new political social, and cultural trends : What new political, social, and cultural trends accompanied the rise of patriotic and nationalist identities in the 19th and early 20th century Middle East?

What is the bonds yield to maturity : You just purchased a bond that matures in 4 years. The bond has a face value of $1,000 and has an 9% annual coupon. The bond has a current yield of 7.63%. What is the bond's yield to maturity? Round your answer to two decimal places.

Draw an equivalent circuit representing each of power system : Draw an equivalent circuit representing each of the following power system components, showing all the circuit parameters in each case: (i) Short transmission line (ii) Medium length transmission line (pi and T circuits) (iii) Synchronous generator

Which would provide the greatest diversicication : Which would provide the greatest diversicication?

What will be the change in the percentage terms : A corporate bond with a 7.100 percent coupon has eleven years left to maturity. It has had a credit rating of BB and a yield to maturity of 8.9 percent. The firm has recently become more financially stable and the rating agency is upgrading the bo..

What is the variable cost per unit : The Junior League of Tampa, Florida, collected recipes from members and published a cookbook entitled Life of the Party. The book will sell for $22 per copy. The chair woman of the cookbook development committee estimated that the league needed to..

Adjusting entry at the end of the accounting period : Miranda Company borrowed $100,000 cash on September 1, 2007, andsigned a one-year 6%, interest-bearing note payable. The required adjusting entry at the end of the accounting period, December 31,2007, would be

Student enrolled in the nursing program : Student A is a tidy person. He has been able to keep his house clean and tidy until he is now enrolled in the nursing program.

Calculate the total cost of the employee-s wages : Calculate the total cost of the employee's wages during the weekdescribed above. Determine the portion of this cost to be classified in each ofthe following categories.

User Account

All Pages