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i Safari File Edit View History Bookmarks Window Help Chegg Study Guided Solutions a HW 6 Fantasy Football Yahool Sports Saved Help Save & Exit Submit Check my w 10 A bond's credit rating provides a guide to its risk. Suppose that long-term bonds rated Aa currently offer yields to maturity of 6%. A- rated bonds sell at yields of 6.3%. Suppose that a 10-year bond with a coupon rate of 6.1% is downgraded by Moody's from an Aa to A rating. 9.09 points a. Is the bond likely to sell above or below par value before the downgrade? eBook Above par value Print Below par value b. ls the bond likely to sell above or below par value after the downgrade? Above par value Below par value Bond Pre10 of 11 : Next >Explanation / Answer
10.
a.
above par value
because yield is lower than the coupon interest rate
b.
below par value
because yield is higher than the coupon interest rate
the above is answer..
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