10. Ford is an example of a company that has been rated as an investment grade company. strategy in the past, but lost its investment grade ratings in 2020 under the weight of the coronovirus pandemic and the global economic collapse. Suppose Ford tried to raise 10 million to invest in new technologies.

a) Prior to 2020, Ford's bonds were rated AA. Calculate the price of the bond b) At this price, how many bonds would Ford have to issue to raise $10 million? (c) What would the rating of the bonds have to be before Ford could sell the bonds at face value? d) In 2021, Ford's bonds were downgraded to BB. Suppose you had purchased the bond in 2020 at the price you calculated in part (a). You sell it in 2021. What is the rate of return you would have had on that bond?