2. US CORPORATE BONDS On-The-Bubble Corporation, a US company, plans to issue $50,000,000 in par value of new 5-year maturity, 0% coupon rate, senior unsecured bonds. The issue would be priced at 80-00 and the issue's proceeds will be exactly enough to fund an exciting new project What would be the yield on this 0% coupon rate, new 5-year maturity debt to investors (and, therefore, the cost of debt to On-The-Bubble Corporation) if it were to be issued at this 80-00 price? a. b. How much money would this new issue raise for the company? S&P has previously given a BBB credit rating to On-The-Bubble Corporation. Today, On-The-Bubble Corporation's investment banker gives the company's CFO a frightening call. After talking over the prospective deal with S&P, this banker thinks that there's a risk that S&P will rate On-The-Bubble's planned issue at BB. What might be the underlying reasons why S&P would lower On-The-Bubble Corporation's credit rating in response to this planned new issue? c. d. If the downgrade does occur, do you think On-The-Bubble Corporation could still fund this same project by issuing S50,000,000 in par value of new 5-year maturity, 0% coupon rate senior unsecured bonds