Problem 16-9 (Algo) Interest rates and bond ratings [LO 16-2] Twenty-five-year B-rated bonds of Parker Optical...

Transcribed Image Text:

Problem 16-9 (Algo) Interest rates and bond ratings [LO 16-2] Twenty-five-year B-rated bonds of Parker Optical Company were initially issued at a 14 percent yield. After 10 years the bonds have been upgraded to Aa2. Such bonds are currently yielding 12 percent to maturity. Use Table 16-2. Determine the price of the bonds with 15 years remaining to maturity. Price of the bonds Problem 16-9 (Algo) Interest rates and bond ratings [LO 16-2] Twenty-five-year B-rated bonds of Parker Optical Company were initially issued at a 14 percent yield. After 10 years the bonds have been upgraded to Aa2. Such bonds are currently yielding 12 percent to maturity. Use Table 16-2. Determine the price of the bonds with 15 years remaining to maturity. Price of the bonds