Thirty-year B-rated bonds of Parker Optical Company were initially issued at a 16 percent yield. After 5 years the bonds have been upgraded to Aa2. Such bonds are currently yielding 14 percent to maturity. Use Table 16.2 Determine the price of the bonds with 25 years remaining to maturity. Price of the bonds Rate in the Market (95) - Annual Yield to Maturity Maturity 1 $ $1,037.72 $1,018.59 $1,000.00 5981.022 5 $1.153.72 $1,000.00 $875.91 $1,345.84 $1,420.54 $1,182.56 $1,000.00 $861.99 + PV Tablo 18-2 Interest rates and bond prices (face value is $1,000 and annual coupon rate is 1296) F H 16 505433 D Rate in the Market (9)- Annual Yield to Maturity Yoons to Maturity 89 10% 12% 144 1 $1,037.72 $1,018.50 $1,000.00 598192 15 $1,345.84 $1,153.72 $1,000.00 $875.91 $1.429.64 $1,18258 $1.000.00 $851.09 3 $77484 4 5 $75533 +PV(212A592, -12012. - 1000) Piratenpept Mg