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Andrew Industries is contemplating issuing a 30-year bond with a coupon rate of 706% (annual coupon payments and a face value of 51.000 Androw believes

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Andrew Industries is contemplating issuing a 30-year bond with a coupon rate of 706% (annual coupon payments and a face value of 51.000 Androw believes it can get a rating of A from Standard & Poor's However, due to recent financial difficulties at the company Standard & Poor's is warning that it may downgrade Andrew Industries bonds to BBB Yelds on A rated long-term bonds are currently 6 445 and yields on 838-rated bonds 689% a. What is the price of the bond it Andrew Industries maintains the A rating for the bond issue? b. What will be the price of the bond it is downgraded? What is the price of the bond it Andrew Industries maintain the Arating for the band issue? And maintains the Arwing for the bond sue the price of the bond is 5 Round to restore) b. What will be the price of the bond if it is downgrad? is downgraded the new bonds price vill be s Round to the newest cent)

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