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  3. the yield to maturity for 10-year bonds is as foll

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

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Accounting

The yield to maturity for 10-year bonds is as follows for four different bond rating categories: Aaa 9.40% Aa2 10.00% Aa1 9.60% Aa3 10.60% The bonds of Falter Corporation were rated as Aaa and issued at par a few weeks ago. The bonds have just been downgraded to Aa2. Determine the new price of the bonds, assuming a 10-year maturity and semiannual interest payments. (Refer to Semiannual Interest and Bond Prices in Chapter 10 for a review if necessary.)

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