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

Correct Answer:

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