What is the bond’s price if it is rated as Aaa?

A bond’s credit rating provides a guide to its price. Assume Aaa bonds yield 3.8% and
Baa bonds yield 4.7%. Assume a 10% six-year bond with annual coupons and a face
value of $1,000.
a. What is the bond’s price if it is rated as Aaa?
b. What is the bond’s price if it is rated as Baa?

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