3) DAH, Inc. has issued a 12% coupon bond that is to mature in 10 years....
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3) DAH, Inc. has issued a 12% coupon bond that is to mature in 10 years. The bond had a $1,000 par value, and interest is due to be paid semiannually. If the firm rating is AAA, what price would you be willing to pay for the bond? (Use the table below to solve the question). Maturity Rating 1 yr 2 yr 3 yr 5 yr 7 yr 10 yr Aaa/AAA 5 7 12 19 31 49 Aal/AA+ 10 22 31 43 55 70 Aa2/AA 13 36 50 67 79 91 Aa3/AA- 16 40 54 72 84 96 A1/A+ 17 42 58 76 88 101 A2/A 44 66 79 96 107 118 A3/A2- 53 84 103 127 143 160 Baal/BBB+ 78 113 132 157 174 191 Baa2/BBB 98 137 160 188 208 227 Baa3/BBB- 157 194 215 242 259 278 Bal/BB+ 251 287 310 337 358 379 Ba2/BB 343 379 403 433 455 479 Ba3/BB- 437 472 498 528 553 580 B1/B+ 530 564 592 623 650 680 B2/B 624 656 686 719 749 781 B3/B- 716 749 780 814 847 881 Caa/CCC+ 810 841 875 908 944 982 U.S. Treasury Yield 0.18% 0.25% 0.32% 0.60% 1.00% 1.59% K 3) DAH, Inc. has issued a 12% coupon bond that is to mature in 10 years. The bond had a $1,000 par value, and interest is due to be paid semiannually. If the firm rating is AAA, what price would you be willing to pay for the bond? (Use the table below to solve the question). Maturity Rating 1 yr 2 yr 3 yr 5 yr 7 yr 10 yr Aaa/AAA 5 7 12 19 31 49 Aal/AA+ 10 22 31 43 55 70 Aa2/AA 13 36 50 67 79 91 Aa3/AA- 16 40 54 72 84 96 A1/A+ 17 42 58 76 88 101 A2/A 44 66 79 96 107 118 A3/A2- 53 84 103 127 143 160 Baal/BBB+ 78 113 132 157 174 191 Baa2/BBB 98 137 160 188 208 227 Baa3/BBB- 157 194 215 242 259 278 Bal/BB+ 251 287 310 337 358 379 Ba2/BB 343 379 403 433 455 479 Ba3/BB- 437 472 498 528 553 580 B1/B+ 530 564 592 623 650 680 B2/B 624 656 686 719 749 781 B3/B- 716 749 780 814 847 881 Caa/CCC+ 810 841 875 908 944 982 U.S. Treasury Yield 0.18% 0.25% 0.32% 0.60% 1.00% 1.59% K
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