(a) On August 18, 2017, Tesla, Inc. issued $1.8 billion of unsecured bonds with a 5.3% coupon. Using the tools and models discussed in our class, what is your estimate of the Bond Rating Equivalent (BRE) and the 5-year Probability of Default just BEFORE and just AFTER the issuance of the bonds? Use year-end 2017 for the risk assessment just after the issuance. Hint: You may need to interpolate the BREs in order to estimate a rating equivalent of a (+) or (-) rating within a major rating category, eg. BBB rating could be BBB+, BBB, or BBB-. Also, as a reminder, use the last twelve months data for any variable that is derived from the income statements in any model you may choose to use. (a) On August 18, 2017, Tesla, Inc. issued $1.8 billion of unsecured bonds with a 5.3% coupon. Using the tools and models discussed in our class, what is your estimate of the Bond Rating Equivalent (BRE) and the 5-year Probability of Default just BEFORE and just AFTER the issuance of the bonds? Use year-end 2017 for the risk assessment just after the issuance. Hint: You may need to interpolate the BREs in order to estimate a rating equivalent of a (+) or (-) rating within a major rating category, eg. BBB rating could be BBB+, BBB, or BBB-. Also, as a reminder, use the last twelve months data for any variable that is derived from the income statements in any model you may choose to use