The 6 percent bonds of Central Gas & Electric are selling at a market price of 72,
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The 6 percent bonds of Central Gas \& Electric are selling at a market price of 72, whereas the 6 percent bonds of Interstate Power are selling at a price of 97 . Does this mean that Interstate Power has a better credit rating than Central Gas \& Electric? Explain. (Assume current long-term interest rates are in the 11 percent to 13 percent range.)
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Financial & Managerial Accounting
ISBN: 9780073526997
15th Edition
Authors: Jan Williams, Sue Haka, Mark Bettner, Joseph Carcello
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