20 year treasury YTM 3.7%

Corporate Credit Spreads Credit Spread in Basis Points Time to Maturity 1 3 5 10 Rating 20 AAA 30 65 90 110 100 130 AA 50 95 140 170 250 310 A 90 125 175 200 BBB 120 150 220 BB 225 300 350 520 250 450 620 1050 B 680 320 500 420 700 500 850 CCC 1300 Central Perk Co. just issued 20-yr coupon bonds rated at BBB. The bonds sold at their $100 par value. Question 12 (5 points) Listen After 10 years Central Perk's bonds have been upgraded to AA. Assuming credit spreads remain unchanged and that 10-yr treasury notes have a YTM of 3.4%, what is the new price of Central Perk's bonds? Your Answer: Answer Corporate Credit Spreads Credit Spread in Basis Points Time to Maturity 1 3 5 10 Rating 20 AAA 30 65 90 110 100 130 AA 50 95 140 170 250 310 A 90 125 175 200 BBB 120 150 220 BB 225 300 350 520 250 450 620 1050 B 680 320 500 420 700 500 850 CCC 1300 Central Perk Co. just issued 20-yr coupon bonds rated at BBB. The bonds sold at their $100 par value. Question 12 (5 points) Listen After 10 years Central Perk's bonds have been upgraded to AA. Assuming credit spreads remain unchanged and that 10-yr treasury notes have a YTM of 3.4%, what is the new price of Central Perk's bonds? Your