$($A$)$ You are asked to value a $($hypothetical$)$ issue of corporate bonds issued by Macy$$s $($ticker M$,$ S&P credit rating $$BB$+)$ with the following characteristics:

Face value $=$ $$1,000$; Annual coupon$=$$$80($paid in semi$-$annual installments$)$; Maturity $=10$ years; Today$$s price $=$ $$965\mathrm{.}50$

What is the Yield to Maturity for those bonds?

$($B$)$ Assume that the above bonds will provide fair compensation for the risk of investment if they offer the YTM you computed in part $($A$).$ Compare YTM from part $($A$)$ to YTM equal to that of a typical $($average$)$ BB$+$ rated issuer. Based on that comparison:

a$.$ Is Macy$$s riskier or less risky compared to the typical BB$+$ issuer?

b$.$ Should Macy$$s be upgraded or downgraded by S&P$?$

$($C$)$ Assume, instead, that Macy$$s bonds in part $($A$)$ should be associated with the YTM equal to that of a typical $($average$)$ BB$+$ rated issuer. Assume that the market participants will realize this very shortly $($say$,$ tomorrow$).$

a$.$ What will be the new price of the bonds described in part $($A$)$ once the bonds trade at a price associated with the new YTM$?$

b$.$ Should you buy or sell Macy$$s bonds today?

Hints: Your answers to A$,$B$,$C have to be number$-$driven and based on values provided above and below and should be centered on what you learned about bond valuation $($yields$,$ prices...$).$ No $$feelings$,$intuitions$,$experiences$$ etc.