Question: The yield to maturity for 2 0 - year bonds is as follows for four different bond rating categories. AAA 1 0 . 0 0

The yield to maturity for 20-year bonds is as follows for four different bond rating categories.
AAA 10.00% A 11.00%
AA 10.20 BBB 11.20
The bonds of Falter Corporation were rated as AAA and issued at par a few weeks ago. The bonds have just been downgraded to AA. Determine the new price of the bonds, assuming a 20-year maturity and semiannual interest payments. Assume the par value of the bonds is $1,000.(Use a Financial calculator to arrive at the answers. Round the final answer to 2 decimal places.)
Price of the bonds

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