A $20-$year bond of a firm in severe financial distress has a coupon rate of $12\%$ and sells for $$885.$ The firm is currently renegotiating the

debt, and it appears that the lenders will allow the firm to reduce coupon payments on the bond to one$-$half the originally contracted

amount. The firm can handle these lower payments. What are $($a$)$ the stated and $($b$)$ the expected yield to maturity of the bonds? The

bond makes its coupon payments annually.

Note: Do not round intermediate calculations. Round your answers to $3$ decimal places. Note from Ville:Assume that the face

value is $$1,000.$ Stated yield to maturity $=$ What is the expected yield to maturity if the bond pays its coupons as promised and

does not reduce them? Expected yield to maturity $=$ What is the yield to maturity if the coupon payments are reduced by $50\%?$