Question
Twenty-five-year B-rated bonds of Parker Optical Company were initially issued at a 10 percent yield. After 10 years the bonds have been upgraded to Aa2.
Twenty-five-year B-rated bonds of Parker Optical Company were initially issued at a 10 percent yield. After 10 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.
price of the bonds _________
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Investment Analysis And Portfolio Management
Authors: Frank K. Reilly, Peggy L. Hedges, Philip Chang, Keith C. Brown, Hedges Reilly Brown
1st Canadian Edition
0176500693, 978-0176500696
