If Zeus Energy Bonds Are Upgraded from BBB− to BBB

If Zeus Energy bonds are upgraded from BBB− to BBB+, which of the following statements is true?

A) The current bond price will decrease and interest rates on new bonds issued will increase.
B) Interest rates required on new bonds issued will increase.
C) The current bond price will decrease.
D) The current bond price will increase and interest rates on new bonds issued will decrease.

Correct Answer:

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