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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.

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.

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