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Golden Corp. has issued a bond. The bond pays $45 coupon per year. The time to maturity of the bond is 3 years. The face

Golden Corp. has issued a bond. The bond pays $45 coupon per year. The time to maturity of the bond is 3 years. The face value of this bond is $1,000. The yield to maturity of the bond is 6%. The credit rating of the bond is BBB by S&P.

A.Calculate the bond price.

B.Is the bond classified as investment grade or non-investment grade? Explain.

C.If the bond of Golden Corp. bond is revised to BB by S&P, what change would you expect to have on the yield to maturity and the bond price? Explain.

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