and yields on BBB-rated bonds are 6.78%. a. What is the price of the bond if Andrew Industries maintains the A rating for the bond issue? b. What will be the price of the bond if it is downgraded? a. What is the price of the bond if Andrew Industries maintains the A rating for the bond issue? If Andrew maintains the A rating for the bond issue, the price of the bond is $. (Round to the nearest cent.) Suppose a seven-year, $1,000 bond with an 8.2% coupon rate and semiannual coupons is trading with a yield to maturity of 6.74%. a. Is this bond currently trading at a discount, at par, or at a premium? Explain. b. If the yield to maturity of the bond rises to 7.45% (APR with semiannual compounding), what price will the bond trade for? a. Is this bond currently trading at a discount, at par, or at a premium? Explain. (Select the best choice below.) A. Because the yield to maturity is greater than the coupon rate, the bond is trading at par. B. Because the yield to maturity is greater than the coupon rate, the bond is trading at a premium. C. Because the yield to maturity is less than the coupon rate, the bond is trading at a premium. D. Because the yield to maturity is less than the coupon rate, the bond is trading at a discount. b. If the yield to maturity of the bond rises to 7.45% (APR with semiannual compounding), what price will the bond trade for? The new price of the bond is . (Round to the nearest cent.) Assume the current Treasury yield curve shows that the spot rates for six months, one year, and one and a half years are 1%,1.1%, and 1.3%, all quoted as semiannually compounded APRs. What is the price of a $1,000 par, 3.5% coupon bond maturing in one and a half years (the next coupon is exactly six months from now)? Suppose a ten-year, $1,000 bond with an 8.4% coupon rate and semiannual coupons is trading for $1,034.48. a. What is the bond's yield to maturity (expressed as an APR with semiannual compounding)? b. If the bond's yield to maturity changes to 9.8% APR, what will be the bond's price