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Andrew Industries is comtemplating issuing a 30-year bond with a coupon rate of 7.29% (annual coupon payments) and a face value of $1,000. Andrew believes

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Andrew Industries is comtemplating issuing a 30-year bond with a coupon rate of 7.29% (annual coupon payments) and a face value of $1,000. Andrew believes it can get a rating of Afrom Dominion Bond Rating Service (DBRS). However, due to recent financial difficulties at the company. DBRS is warning that it may downgrade Andrew Industries bonds to BBB. Yields on A-rated long-term bonds are currently 6.79%, and yields on BBB-rated bonds are 7.19% a. What is the price of the bond if Andrew maintains the A rating for the bond issue? b. What will the price of the bond be if it is downgraded? a. What is the price of the bond if Andrew maintains the A rating for the bond issue? The price of the bond maintaining the A rating is $(Round to the nearest cent.) b. What will the price of the bond be if it is downgraded? The price of the bond if it is downgraded will be s (Round to the nearest cent.)

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