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A bonds credit rating provides a guide to its price assume

A bond's credit rating provides a guide to its price. Assume Aaa bonds yield 3.9% and Baa bonds yield 4.9%. Assume a 10% five-year bond with annual coupons and a face value of $1,000. (Do not round intermediate calculations. Round your answers to 2 decimal places.)

a. What is the bond's price if it is rated as Aaa?

Bond price $

b. What is the bond's price if it is rated as Baa?

Bond price $

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Finance Basics: A bonds credit rating provides a guide to its price assume

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