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The current U.S. treasury rates (yields) are as shown below. Maturity Treasury rate 5 4.0% 10 4.3% 15 4.6% 20 4.9% Current credit spreads (in

The current U.S. treasury rates (yields) are as shown below.

Maturity Treasury rate
5 4.0%
10 4.3%
15 4.6%
20 4.9%

Current credit spreads (in basis points) for various bond rating categories and maturities are as shown below.

Years to Maturity
Rating 5 10 15 20
AA 100 120 140 170
A 120 140 160 180
BBB 200 220 240 260

Company DebtCo issued 20-year bonds with a 4% coupon rate (semi-annual payments) 5 years ago. The bonds are currently rated A. What should be the bonds price today (par = $1000)?

Show your answer in $ and round to two decimals (e.g. $xxx.xx).

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