ndrew Industries is contemplating issuing a 30-year bond with a coupon rate of 7.13% (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 dificulties at the company, Standard & Poor's is warning that it may downgrade And ndustries' bonds to BBB. Yields on A-rated, long-term bonds are currently 6.49%, and yields on BBB-rated bonds are 6.87%. What is the price of the bond if Andrew Industries maintains the A rating for the bond issue? What will be the price of the bond if it is downgraded? .What is the price of the bond if Andrew Industries maintains the A rating for the bond issue? Andrew maintains the A rating for the bond issue, the price of the bond is S (Round to the nearest cent.) What will be the price of the bond if it is downgraded? it is downgraded, the new bond's price will be $ (Round to the nearest cent.)

Uliana Company wants to issue new 16-year bonds for some much-needed expansion projects. The company currently has 8 percent coupon bonds on the market that sell for $1,065, make semiannual payments, and mature in 16 years. What coupon rate should the company set on its new bonds if it wants them to sell at par? (Do not round intermediate calculations and enter your answer as a percent rounded to 2 decimal places, e.g., 32.16.)   Please solve with financial calculator or HP 10b and show inputs. Please don't use excel.

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(Related to Checkpoint 9.3) (Bond valuation) Pybus, Inc. is considering issuing bonds that will mature in 22 years with an annual coupon rate of 7 percent. Their par value will be $1,000, and the interest will be paid semiannually. Pybus is hoping to get a AA rating on its bonds and, if it does, the yield to maturity on similar AA bonds is 10 percent. However, Pybus is not sure whether the new bonds will receive a AA rating. If they receive an A rating, the yield to maturity on similar A bonds is 11 percent. What will be the price of these bonds if they receive either an A or a AA rating? a. The price of the Pybus bonds if they receive a AA rating will be $ 735.06. (Round to the nearest cent.) b. The price of the Pybus bonds if they receive an A rating will be $ (Round to the nearest cent.)

The Loughran Corporation has issued zero-coupon corporate bonds with a five-year maturity. Investors believe there is a 40% chance that Loughran will default on these bonds. If Loughran does default, investors expect to receive 25% of their promised payoff at maturity (e.g., $0.25 cents per dollar they are promised). If investors require a 7.0% expected return on their investment in these bonds, which of the following statements most accurately describes the price (per $100 face value) and current YTM of these bonds? OA. This bond is priced at $42.78 per $100 face value with a YTM of 18.5% OB. This bond is priced at $49.91 per $100 face value with a YTM of 14.9% OC. This bond is priced at $71.30 per $100 face value with a YTM of 7.0%. OD. This bond is priced at $49.91 per $100 face value with a YTM of 7.0%. OE. This bond is priced at $70.00 per $100 face value with a YTM of 7.4%.

Short Corp just issued bonds that will mature in 10 years, and Long Corp issued bonds that will mature in 20 years. Both bonds promise to pay a semiannual coupon, they are not callable or convertible, and they are equally liquid. Further assume that the Treasury yield curve is based only on the pure expectations theory. Under these conditions, which of the following statements is CORRECT? O a. If Long's and Short's bonds have the same default risk, their yields must under all conditions be equal. O b. If the Treasury yield curve is upward sloping and short has less default risk than Long, then Short's bonds must under all conditions have a lower yield than Long's bonds. O c. If the yield curve for Treasury securities is flat, Short's bond must under all conditions have the same yield as Long's bonds. O d. If the yield curve for Treasury securities is upward sloping, Long's bonds must under all conditions have a higher yield than Short's bonds. O e. If the Treasury yield curve is…

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I need Help with Part B