answer a-d
Dre: 0 of 1 pt 15 of 15 f4 complete HW Score: 23.33%, 3.5 of 15 oblem 6-26 (bookmatch) Question Kts would do to ne 100 million to invest in capital expenses. The company plans to sue to your bonds with a face value of $1.000 and a coupon rate 16.50% (annual payments. The following table summarizes they my tortive-year coupon corpore bonds of various ratings AAA AA BB BB YTM 6309 6.50% 6.909 750% om the bonds will be noted what will the price of the bond be? How much of the palmount of the bonds must HMKs to $10.0 million today assuming the bonds were cause HNK Carnot issue a fraction of a bond, assume a fractions are rounded to the wheb) What must be the goods for them to apar? support when the bonds of ach bond a 1959.54. What is the likely rating of the bonds? Are they nk bonda? Asuming the bonds wil be ruled A what will the price of the bonds be? The price of the bonds will be found to the nearest cont) Er you in the box and check A GEN s A 2 3 5 6 7 8 9 0 E R W T Y 0 U HUMEWUIR. Labb 15 of 15 (4 complete) Score: 0 of 1 pt Problem 6-26 (bookmatch) YTM HMK Enterprises would like to raise $10.0 million to invest in capital expenditures. The company plans to issue five-year bonds with a face value of $1,000 and a coupon rate of 8.50% (ann to maturity for five-year (annual-payment) coupon corporate bonds of various ratings Rating AAA AA BBB BB 6.20% 6.30% 6.50% 6.90% 7.50% a. Assuming the bonds will be rated MA, what will the price of the bonds be? b. How much of the total principal amount of these bonds must HMK issue to raise $10.0 million today, assuming the bonds are AA rated? (Because HMK cannot issue a fraction at a bond, as whole number) c. What must be the rating of the bonds for them to sell at par? d. Suppose that when the bonds are issued, the price of each bond is $959.54. What is the likely rating of the bonds? Are they junk bonds? a. Assuming the bonds will be rated AA, what will the price of the bonds be? The price of the bonds will be $(Round to the nearest cent.) Enter your answer in the answer box and then click Check Answer 3 parts remaining