You are asked to value a $($hypothetical$)$ issue of corporate bonds issued by Northstrom$($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$

$($A$)$ 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: Is Northstrom riskier or less risky compared to the typical BB$+$ issuer? Should it be upgrated or downgraded?

$($C$)$ Assume, instead, that Northstrom 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$).$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$?$

Hint:

Default Spreads $(10$ year $-$ corporate bonds$)$ for US Companies, $2024$

and

US Daily Treasury Yield Curve