A corporate bond with a face value of 1000 and a coupon, Financial Management

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A corporate bond with a face value of 1000 and a coupon

A corporate bond with a face value of $1000 and a coupon rate of 5% has only 4 years remaining to maturity. Because of its credit rating, this bond has a yield of 6.5%. The rating agencies just upgraded the bond, and as a result its discount rate fell to 6%. What will be the change in the price of this bond?

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Financial Management: A corporate bond with a face value of 1000 and a coupon

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