EXERCISE #4: A 5-year 4% Arated corporate bonds yield to maturity is 6%. [Assume annual or semiannual.] Quoted Price = . The bond gets downgraded to…

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EXERCISE #4: A 5-year 4% A—rated corporate bonds yield to maturity is 6%. [Assumeannual or semiannual.] Quoted Price = …………………………The bond gets downgraded to 33-. It’s yield is likely to be …………………… than 4% andlowerlhigher ………………… than 6%, and the price is likely to be thanlower/higher less/greater QPrice

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