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TIA! A bond's credit rating provides a guide to its price. Assume Aaa bonds yield 5.0% and Baa bonds yield 6.0%. Assume a 10% five-year
TIA!
A bond's credit rating provides a guide to its price. Assume Aaa bonds yield 5.0% and Baa bonds yield 6.0%. Assume a 10% five-year bond with annual coupons and a face value of $1,000. (Do not round intermediate calculations. Round your answers to 2 decimal places.) a. What is the bond's price if it is rated as Aaa? Answer is complete but not entirely correct. Bond price $ 1,828.84 X b. What is the bond's price if it is rated as Baa? Answer is complete but not entirely correct. Bond price $ 1,901.93
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