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3) Five years ago, Tayr Inc. issued twenty-five-year 10% annual coupon bonds with a $1,000 face value each. Since then, interest rates in general have

3) Five years ago, Tayr Inc. issued twenty-five-year 10% annual coupon bonds with a $1,000 face value each. Since then, interest rates in general have risen and the yield to maturity on the Thompson bonds is now 15%. Given this information, what is the fair market price today for a Tayrs bond? Do investors take into account credit rating of Tayr when they purchase their bonds?

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