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The yield to maturity for 10-year bonds is as follows for four different bond rating categories....

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Finance

The yield to maturity for 10-year bonds is as follows for fourdifferent bond rating categories. Use Appendix B and Appendix D foran approximate answer but calculate your final answer using theformula and financial calculator methods.

Aaa8.60%
Aa18.80%
Aa29.00%
Aa310.00%

The bonds of Falter Corporation were rated as Aa1 and issued atpar a few weeks ago. The bonds have just been downgraded to Aa3.Determine the new price of the bonds, assuming a 10-year maturityand semiannual interest payments.

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YTM of bond when it was issued    See Answer
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The yield to maturity for 10-year bonds is as follows for fourdifferent bond rating categories. Use Appendix B and Appendix D foran approximate answer but calculate your final answer using theformula and financial calculator methods.Aaa8.60%Aa18.80%Aa29.00%Aa310.00%The bonds of Falter Corporation were rated as Aa1 and issued atpar a few weeks ago. The bonds have just been downgraded to Aa3.Determine the new price of the bonds, assuming a 10-year maturityand semiannual interest payments.

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