2023 The following article appeared in the Wall Street Journal Bond MarketsGiant Commonwealth Edison Issue Hits Resale Market With | Assignments Online

The following article appeared in the Wall Street Journal.Bond MarketsGiant Commonwealth Edison Issue Hits Resale Market With $70 Million Left OverNEW YORK–Commonwealth Edison Co.’s slow-selling new 9~% bonds were tossed onto the resalemarket at a reduced price with about $70 million still available from the $200 million offered Thursday,dealers said.The Chicago utility’s bonds, rated double-A by Moody’s and double-A-minus by Standard& Poor’s, originally had been priced at 99.803, to yield 9.3% in 5 years. They were marked downyesterday the equivalent of about $5.50 for each $1,000 face amount, to about 99.25, where their yieldjumped to 9.45%.Instructions(a) How will the development above affect the accounting for Commonwealth Edison’s bond issue?(b) Provide several possible explanations for the markdown and the slow sale of CommonwealthEdison’s bonds.