Artimus Industries issued 10 year bonds with a par value of $1,000 and a 4% coupon rate. When the bonds were issued, the real interest rate was 0.94% and the inflation rate was 2.24%. Given the AAA bond rating, the credit spread was 49 basis points.

What was the yield to maturity of the bond when it was issued? What was the price of the bond when it was issued?

Five years later, AI's financial condition has deteriorated and the bond rating has fallen to AA. The credit spread is now 72 basis points. In addition, the rate of inflation has fallen to 1.25%.

What is the current yield to maturity of the bond? What is the current price of the bond?