Consider a 10-year bond with a face value of $1,000 that has a coupon rate of 5.5%, with semiannual payments. a. What is the coupon payment for this bond? b. Draw the cash flows for the bond on a timeline. a. What is the coupon payment for this bond? The coupon payment for this bond is $ (Round to the nearest cent.) b. Draw the cash flows for the bond on a timeline. Select the timeline below that shows the correct cash flows for this bond. (Select the best choice below.) O A. Period 0 1 2 9 10 Cash Flows $27.50 $27.50 $27.50 $1,027.50 OB. Period 0 2 19 20 - Cash Flows $27.50 $27.50 $27.50 $1,027.50 O C. Period 2 9 10 Cash Flows $27.50 $27.50 $27.50 $1,000 OD. Period 0 1 2 19 20 Cash Flows $27.50 $27.50 $27.50 $1,000 Click to select your answer(s). Andrew Industries is contemplating issuing a 30-year bond with a coupon rate of 7.12% (annual coupon payments) and a face value of $1,000. Andrew 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. Yields on A-rated, long-term bonds are currently 6.43%, and yields on BBB-rated bonds are 6.78%. 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? a. What is the price of the bond if Andrew Industries maintains the A rating for the bond issue? If Andrew maintains the A rating for the bond issue, the price of the bond is $ (Round to the nearest cent.) b. What will be the price of the bond if it is downgraded? If it is downgraded, the new bond's price will be $ (Round to the nearest cent.)