It is 2030 and the yields on corporate bonds are as follows: Aaa 8.01% A 10.01%...
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It is 2030 and the yields on corporate bonds are as follows: Aaa 8.01% A 10.01% Ba 12.01% Tau Corporation wishes to raise $12 million by an issue of 9% 10-year bonds. Assume a face value of $100 and annual coupons. What will be the likely issue price (as a percent of face value) if Tau is rated (a) Aaa, (b) A, or (c) Ba? Note: Do not round intermediate calculations. Enter your answers as a percent rounded to 2 decimal places. a. Aaa bond price % of face value. b. A bond price % of face value. c. Ba bond price % of face value. It is 2030 and the yields on corporate bonds are as follows: Aaa 8.01% A 10.01% Ba 12.01% Tau Corporation wishes to raise $12 million by an issue of 9% 10-year bonds. Assume a face value of $100 and annual coupons. What will be the likely issue price (as a percent of face value) if Tau is rated (a) Aaa, (b) A, or (c) Ba? Note: Do not round intermediate calculations. Enter your answers as a percent rounded to 2 decimal places. a. Aaa bond price % of face value. b. A bond price % of face value. c. Ba bond price % of face value.
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