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The yield to maturity for 20-year bonds is as follows for four different bond rating categories. Use A Rpendix B and ARpendix D for an
The yield to maturity for 20-year bonds is as follows for four different bond rating categories. Use A Rpendix B and ARpendix D for an approximate answer but calculate your final answer using the formula and financial calculator methods. {:[" Aas ",9.40%],[" Aal ",9.60%],[" A.a2 ",10.00 K],[" Bas ",11.40%]:} 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 20 -year maturity and semiannual interest payments. Note: Do not round intermediate colculations and round your answer to 2 decimal places. Price of the bonds
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