The four different bond ratings below have a yeild to maturity for 10 year bonds. Baa 9.40% Ba1 9.60% Ba2 10.00% Ba3 10.60% The bonds of Parrot Corp. were rated as Baa (9.40%) and issued at par a few weeks ago. The bonds have just been downgraded to Ba2 (10.00%) . Determine the new price of the bonds, assuming a 10-year maturity and semi-annual interest payments.
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The four different bond ratings below have a yeild to maturity for 10 year bonds.
Baa 9.40%
Ba1 9.60%
Ba2 10.00%
Ba3 10.60%
The bonds of Parrot Corp. were rated as Baa (9.40%) and issued at par a few weeks ago. The bonds have just been downgraded to Ba2 (10.00%) . Determine the new price of the bonds, assuming a 10-year maturity and semi-annual interest payments.
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