Question: Please help calculate & answer: A 2025, 7% coupon, BB+ bond is bought at $980 in 2020. The risk free rate is 1%. What is

Please help calculate & answer:

  1. A 2025, 7% coupon, BB+ bond is bought at $980 in 2020. The risk free rate is 1%. What is the credit spread on this bond according to current market pricing. Use excel to show calculation. Given the bond above what would happen to its YTM and spread if S&P increased its rating to BBB-?

Thank you for your help.

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