Showyourwork 8. Bond Pricing. A 6-year Circular File bond with face value $1,000 pays interest once a year of $80 and sells for $950. (L06-2) a. What is its coupon rate? b. What is its yield to maturity? c. If Circular wants to issue a new 6-year bond at face value, what coupon rate must the bond offer? 35. Credit Risk. A bond's credit rating provides a guide to its risk. Suppose that long-term bonds rated Aa currently offer yields to maturity of 7.5%. A-rated bonds sell at yields of 7.8%. Suppose that a 10-year bond with a coupon rate of 7.6% is downgraded by Moody's from an Aa to A rating. (L06-5) a. Is the bond likely to sell above or below par value before the downgrade? b. Is the bond likely to sell above or below par value after the downgrade