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  3. a corporate bond with a coupon rate of 7.2 percent

A corporate bond with a coupon rate of 7.2 percent has 18 years left to...

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Accounting

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A corporate bond with a coupon rate of 7.2 percent has 18 years left to maturity. It has had a credit rating of BBB and a yield to maturity of 7.9 percent. The firm has recently gotten into some trouble and the rating agency is downgrading the bonds to BB. The new appropriate discount rate will be 9.2 percent. (Assume interest payments are semiannual.) What will be the change in the bond's price in dollars? (Negative amount should be indicated by a minus sign. Do not round intermediate calculations. Round your final answer to 2 decimal places.) X Answer is complete but not entirely correct. Change in bond price S (933.36) X What will be the change in the percentage? (Negative answer should be indicated by a minus sign. Do not round intermediate calculations. Round your final answer to 2 decimal places.) Answer is complete but not entirely correct. Change in bond percent (83.23) X %

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