part 1: A bond is selling for a $1,160 and has a coupon rate of 8% with 8 years to maturity. What is the bond’s yield t

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answerhappygod
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part 1: A bond is selling for a $1,160 and has a coupon rate of 8% with 8 years to maturity. What is the bond’s yield t

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part 1: A bond is selling for a $1,160 and has a coupon rate of
8% with 8 years to maturity. What is the bond’s yield to
maturity?
part 2: A company experiences a credit ratings downgrade
from A to BBB. What effect would that have on:
a. The yield to
maturity of the bond.
b. The price of
the bond.
c. The size
(amount) of coupon payments the company makes on the bond.
Thanks in advance!
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