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please answer both a and B Andrew Industries is contemplating issung a 30 year bond with a coupon rate of 7.03% (annual coupon payments) and

image text in transcribedplease answer both a and B
Andrew Industries is contemplating issung a 30 year bond with a coupon rate of 7.03% (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 cultes at the company Standard & Poor's is warning that it may downgrade Andrew industries bonds to BBB. Yields on A-rated long form bonds are currently 6.45%, and yields on BBB-tated bonds me 6.86% a. What is the price of the bond it Andrew Industries maintains the Arating for the bond isso? b. What will then the bond is owneded? a. What is the price of the bondit Andrew Industries maintains the Arating for the bond isso? Andrew mantans the Arating for the bond issue, the price of the bond is (Round to the nearest cent)

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