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The yield to maturity for 25-year bonds is as follows for four different bond rating categories. AAA AA 9.20% 9.40 A BBB 10.00% 10.40
The yield to maturity for 25-year bonds is as follows for four different bond rating categories. AAA AA 9.20% 9.40 A BBB 10.00% 10.40 The bonds of Falter Corporation were rated as AAA and issued at par a few weeks ago. The bonds have just been downgraded to AA. Determine the new price of the bonds, assuming a 25-year maturity and semiannual interest payments. Assume the par value of the bonds is $1,000. (Use a Financial calculator to arrive at the answers. Round the final answer to 2 decimal places.) Price of the bonds $ 1216.33
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Investments An Introduction
Authors: Herbert B Mayo
9th Edition
324561385, 978-0324561388
