Andrew Industries is contemplating issuing a $30-$year bond with a coupon rate of $7\mathrm{.}04\%($annual coupon$$ payments$)$ and a face value of $ $1$ comma $000.$ Andrew believes it can get a rating of A from Standard$$ & Poor's.$$ However, due to recent financial difficulties at the$$ company, Standard$$ & Poor's is warning that it may downgrade Andrew$$ Industries' bonds to BBB$.$ Yields on$$ A$-$rated, long$-$term bonds are currently $6\mathrm{.}41\%,$ and yields on$$ BBB$-$rated bonds are $6\mathrm{.}85\%.$

a$.$ What is the price of the bond if Andrew Industries maintains the A rating for the bond$$ issue?

b$.$ What will be the price of the bond if it is$$ downgraded?

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Part $1$

a$.$ What is the price of the bond if Andrew Industries maintains the A rating for the bond$$ issue?

If Andrew maintains the A rating for the bond$$ issue, the price of the bond is $$$

$$

enter your response here. $($Round to the nearest$$ cent.$)$