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A bond's credit rating provides a guide to its price. In December 2 0 2 0 , Aaa bonds yielded 5 . 4 % ,
A bond's credit rating provides a guide to its price. In December Aaa bonds yielded and Baa bonds yielded Some bad news causes a fiveyear bond to be unexpectedly downrated from Aaa to Baa. Assume face value is $
Note: Do not round intermediate calculations. Round your answers to decimal places.
a What is the bond's price if it is rated as Aaa?
b What is the bond's price if it is rated as Baa?
a Bond price
b Bond price
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