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The yield to maturity for 15-year bonds is as follows for four different bond rating categories. Use Appendix B and Appendix D. AAA 9.60% A

The yield to maturity for 15-year bonds is as follows for four different bond rating categories. Use Appendix B and Appendix D.

AAA 9.60% A 10.20%
AA 9.80 BBB 10.40

The bonds of Falter Corporation were rated as AA and issued at par a few weeks ago. The bonds have just been downgraded to A. Determine the new price of the bonds, assuming a 15-year maturity and semiannual interest payments. Assume the par value of the bonds is $1,000. (Do not round intermediate calculations. Round "PV Factor" to 3 decimal places. Round the final answer to 2 decimal places.)

Price of the bonds $

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