2. A AAA rated bond has a price of $900, years to maturity of 10, and a coupon rate of 2%. The treasury yield is 1%. The AAA spread is 2.17%. The AA spread is 2.95%. If the bond is downgraded to a AA credit rating, what will happen to its price? If you purchased the bond when it was rated AAA and sold it a year later, after it has been downgraded to AA, what would your holding period return be?