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A bond's credit rating provides a guide to its price. In December 2020, Aaa bonds...

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Accounting

A bond's credit rating provides a guide to its price. In December 2020, Aaa bonds yielded 4.9%, and Baa bonds yielded 5.9%. Some
bad news causes a 10% five-year bond to be unexpectedly downrated from Aaa to Baa. Assume face value is $1,000.
Note: Do not round intermediate calculations. Round your answers to 2 decimal places.
a. What is the bond's price if it is rated as Aaa?
b. What is the bond's price if it is rated as Baa?
a. Bond price
b. Bond price
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