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Andrew industries is contemplating issuing a 30-year bond with a coupon rate of 7.19% (annual coupon poyments) and a face value of $1,000. Andrew believes

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Andrew industries is contemplating issuing a 30-year bond with a coupon rate of 7.19% (annual coupon poyments) and a face value of $1,000. Andrew believes it can got a rating of A fom Standard \& Poor's. However, due to recent financial dificulties at the company, Standard 8 Poer's is waming that it may downgrade Andrew induatries' bonds to B8B. Vields on Atatied, longterm bonds are currently 6.53\%, and yields on BB8-rated bonds are 6.78%. a. What is the price of the bond if Andrew Indussries maintains the A rating for the bond issue? b. What will be the price of the bond it it is downgraded

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