Question
The yield to maturity for 15-year bonds is as follows for four different bond rating categories. Use Appendix B and Appendix D for an approximate
The yield to maturity for 15-year bonds is as follows for four different bond rating categories. Use Appendix B and Appendix D for an approximate answer but calculate your final answer using the formula and financial calculator methods.
| Aaa | 8.20% |
| Aa1 | 8.60% |
| Aa2 | 9.00% |
| Aa3 | 10.00% |
|
| |
The bonds of Falter Corporation were rated as Aaa and issued at par a few weeks ago. The bonds have just been downgraded to Aa2. Determine the new price of the bonds, assuming a 15-year maturity and semiannual interest payments.
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The Management Of Business Finance
Authors: John Freear
1st Edition
0273014315, 978-0273014317
