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(Solved): Calculate the price of the following corporate bond with a credit rating of BBB+ / Baa+: $1,000 par ...



Calculate the price of the following corporate bond with a credit rating of BBB+ / Baa+: $1,000 par value, 9% semi-annual pay coupon, 8.40% yield to maturity, and six years to maturity. Assume that the next morning, the bond credit rating changes to A-/A-, and the new yield to maturity becomes 7.2%. What is the price of the bond after this change?



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