A bonds credit rating provides a guide to its risk. Long-term bonds rated Aa currently offer yields to maturity of 7.9%. A-rated bonds sell at yields of 8.2%. Assume a 10-year bond with a coupon rate of 7.4% is downgraded by Moodys from Aa to A rating.

a.	Calculate the initial price. (Do not round intermediate calculations. Round your answer to 2 decimal places.)

Initial price

$

b.	Calculate the new price. (Do not round intermediate calculations. Round your answer to 2 decimal places.)

New price

$