If a 2-year ba2bb bond is upgraded to the lowest


(1) What is the recovery rate on a 1-year B2/B bond assuming a default probability of 831 basis points?

(2) If a 2-year Ba2/BB bond is upgraded to the lowest investment-grade rating will be the resulting change in the price of this bond as a percent of par?

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Financial Management: If a 2-year ba2bb bond is upgraded to the lowest
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