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When i got my cockatiel her name was Sunny... I didn't like that name, so i changed it to Sparta!
Of course, i didn't know how long she had the name Sunny, but she seemed to like the name change anyway
Now she responds to her new name, Sparta, by cocking her head and looking at me like "What." "What do you want human."
Parrots are incredibly intelligent, and i think even if the bird knows it's name, you could probably change it and eventually the bird would get that what you're calling it is it's new name.
And if the bird came from a bad situation, i think it's better to change it's name. New life, new name.