Question: Please solve using excel! PART A: What should the coupon rate be, if a company wants to issue 10 year semi annual bonds. The comapny

Please solve using excel!

Please solve using excel! PART A: What should the coupon rate be,

PART A:

What should the coupon rate be, if a company wants to issue 10 year semi annual bonds. The comapny is CCC rated?

PART B:

A company has issued 5 year BB bonds that pay a semi-annual coupon of 4.4% the company hits financial diffculty and the bonds are downgraded to CCC. What was the change in the price of the bond?

SecurityTreasuryTreasuryTreasuryTreasuryTreasuryCorp1Corp2Corp3Corp4Rating35ABBAACCCYearsMaturity1$1,000$1,0001020510203FaceValue$1,0002.00%4.40%$1,000$1,000$1,000$1,000$1,000$1,000CouponRate0.00%$939.06$932.427.80%7.00%8.10%5.00%8.20%4.50%MarketPrice$966.66$1,007.12$908.25$1,000.00$678.00$972.22$884.00

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