Jackson Industries is contemplating issuing a $30-$year bond with a coupon rate of $7\mathrm{.}01\%($annual coupon$$ payments$)$ and a face value of $ $1000.$ Jackson believes it can get a rating of A from Standard$$ & Poor's.$$ However, due to recent financial difficulties at the$$ company, Standard$$ & Poor's is warning that it may downgrade Jackson$$ Industries' bonds to BBB$.$ Yields on$$ A$-$rated, long$-$term bonds are currently $6\mathrm{.}55\%,$ and yields on$$ BBB$-$rated bonds are $6\mathrm{.}84\%.$

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

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

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Part $1$

a$.$If Jackson maintains the A rating for the bond$$ issue, the price of the bond is $$$

$$

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

Part $2$

b$.$ If it is$$ downgraded, the new$$ bond's price will be $$$

$$

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