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$\text{'}$ bonds to BBB$.$ Yields on$$ A$-$rated, long$-$term bonds are currently $6\mathrm{.}47\%,$ and yields on$$ BBB$-$rated bonds are $6\mathrm{.}81\%.$

a$.$ What is the price of the bond if Andrew Industries maintains the A rating for the bond$$ issue?

b$.$ What will be the price of the bond if it is$$ downgraded?

Question content area bottom

Part $1$

a$.$ What is the price of the bond if Andrew Industries maintains the A rating for the bond$$ issue?

If Andrew Industries maintains the A rating for the bond$$ issue, the price of the bond is $$$

$$

$1,087\mathrm{.}77.($Round to the nearest$$ cent.$)$

Part $2$

b$.$ What will be the price of the bond if it is$$ downgraded?

If it is$$ downgraded, the new$$ bond's price will be $$$

$$

enter your response here. $($R