Your firm is considering issuing a new 20-year bond to fund a large expansion project. Existing bonds of your firm have a credit rating of AA and a credit spread of 60 basis points (0.60%), which you believe will remain constant with the new issue. Given the Treasury yields below, what coupon rate will investors likely require to purchase the new bonds? Enter your answer with 2 decimal places. 1 Yr 0.78 2 Yr 0.89 3 Yr 0.99 5 Yr 1.29 10 Yr 1.64 20 Yr 197 30 Yr+ 2.28 U.S. Treasures Question 8 Your company just issued new debt with 20 years to maturity, causing the firm's debt-to-equity ratio to spike. Because of the added debt burden, credit rating agencies have downgraded all bonds issued by your company to 'A'. The coupon rate of your company's newest bond issue was set at 3.0%, but yields on similar maturity corporate bonds with an A rating are currently at 4.0%. Assuming the new bond will make semi-annual coupon payments, what price will the bond likely trade at after the downgrade? Enter your answer with at least 4 decimal places. Do not include a negative sign. Assume 100 face amount