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A $5-$year bond of a firm in severe financial distress has a coupon rate of $14\%$ and sells for $$875.$ The firm is currently renegotiating the debt, and it appears

that the lenders will allow the firm to reduce co$$pon payments on the bond to one$-$half the originally contracted amount. The firm can handle these lower

payments. What are $($a$)$ the stated $($with original coupon rate$)$ and $($b$)$ the expected$($with reduced coupon rate$)$ yield to maturity of the bonds? The bond

makes its coupon payments annually.