The 20-year A-rated bonds of Polly Cracker Company were initially issued at a 10 percent yield (paid

Question:

The 20-year A-rated bonds of Polly Cracker Company were initially issued at a 10 percent yield (paid semiannually). After 5 years, the bonds have been upgraded to AA. Such bonds are currently yielding 8 percent (semiannual compounding).
Determine the price of a Polly Cracker bond.

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