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Andrew Industries s contemplating issuing a 30-year bond with a coupon rate of 5.55% annual coupon payments and a face value of $1,000. Andre believes

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Andrew Industries s contemplating issuing a 30-year bond with a coupon rate of 5.55% annual coupon payments and a face value of $1,000. Andre believes it can get a rating of A from Standard and Poor's. However, due to recent financial difficulties at the company, Standard and Poor's is warning that it may downgrade Andrew Industries bonds to BBB. Yields on A-rated long-term bonds are currently 5.05%, and yields on BBB-rated bonds are 5.45% 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

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