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The yield to maturity for 25-year bonds is as follows for four different bond rating categories. AAA 10.00% A 11.00% AA 10.60 BBB 11.40 The

The yield to maturity for 25-year bonds is as follows for four different bond rating categories.

AAA 10.00% A 11.00%
AA 10.60 BBB 11.40

The bonds of Falter Corporation were rated as A and issued at par a few weeks ago. The bonds have just been downgraded to BBB. 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 $

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