The yield to maturity for 20-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 8.50%

Aa1 9.00%

Aa2 10.00%

Aa3 10.80%

The bonds of Falter Corporation were rated as Aaa and issued at par a few weeks ago. The bonds have just received a new rating of Aa2. Determine the new price of the bonds, assuming a 20-year maturity and semiannual interest payments. (Do not round intermediate calculations and round your answer to 2 decimal places.)

Price of the bonds $___________