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Twenty-five-year B-rated bonds of Parker Optical Company were initially issued at a 10 percent yield and 12 percent coupon. After 12 years the bonds have
Twenty-five-year B-rated bonds of Parker Optical Company were initially issued at a 10 percent yield and 12 percent coupon. After 12 years the bonds have been upgraded to Aa2. Such bonds are currently yielding 8 percent to maturity. Use Table 16-2.
Determine the price of the bonds with 15 years remaining to maturity.
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