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The yield to maturity for 2 0 - year bonds is as follows for four different bond rating categories. AAA 1 0 . 0 0
The yield to maturity for year bonds is as follows for four different bond rating categories.
AAA A
AA BBB
The bonds of Falter Corporation were rated as AAA and issued at par a few weeks ago. The bonds have just been downgraded to AA Determine the new price of the bonds, assuming a year maturity and semiannual interest payments. Assume the par value of the bonds is $Use a Financial calculator to arrive at the answers. Round the final answer to decimal places.
Price of the bonds
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