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

Correct Answer:

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