The yield to maturity for 25 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 9 40 Aa1 9 60 Aa2 10 00 Aa3 10 50 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 25 year maturity and semiannual interest payments (Do not round intermediate calculations and round your answer to 2 decimal places )

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The yield to maturity for 25-year bonds is as follows for four different bond rating categories. Use Appendix B and Appendix D for an approximate

The yield to maturity for 25-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	9.40%
Aa1	9.60%
Aa2	10.00%
Aa3	10.50%

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 25-year maturity and semiannual interest payments. (Do not round intermediate calculations and round your answer to 2 decimal places.)