1.(15 marks) Generation Corporation plans to issue 25-year semiannual coupon bonds with a par value of $1,000 and coupon rate of 6.0% (in APR). The following table summarizes the yield to maturity (in APR) for 25-year coupon corporate bonds of different ratings by S&P: Rating YTM AAA 6.0% AA 6.5% A 7.0% BBB 7.5% BB 8.0% a) Assuming the bonds will be rated "A", what will the price of the bonds be? (4 marks) b) What must the rating of the bonds be for them to sell at par ($1,000)? (2 marks) c) Suppose that when the bonds are issued, the price of each bond is $785. What is the most likely rating of the bonds? Do they belong to the category of junk bonds (BBB or BB)? (4 marks) d) How do the YTM of the Treasury Bond and BB Bond change during financial crisis? What is the main reason of the changes