BIM plans to issue a bond with a 30-year term, a coupon rate of 7.36% (annual coupon payments) and a face value of $1,000. They assume they can get an A rating from S&P. However, it possible they may get a rating of BBB due to some trouble coming. Yields on A-rated long-term bonds are currently 6.86%, and yields on BBB-rated bonds are 7.26%.  

a. What is the value (per $1,000 of Face) of the bond if it is A rated?

b. What is the value (per $1,000 of Face) of the bond if it is BBB rated?

a. Value with A rating: $

nothing

.  (Round to the nearest cent.)

b. Value with BBB rating: $

nothing

.  (Round to the nearest cent.)