A bonds credit rating provides a guide to its risk. Suppose that long term bonds rated Aa currently offer yields to a maturity of 7.5%. A- rated bonds sell at yields of 7.8%. Suppose that a 10-year bond with a coupon rate of 7.6% is downgraded by Moody's from an Aa to A rating.

A. Is the bond likely to sell above or below par value before the downgrade?

B. Is the bond likely to sell above or below par value after the downgrade?