CBV64 Adam Co. would like to raise $10 million to invest in capital expenditures. The company plans to issue five-year bonds with a face value of $1000 and a coupon rate of 4.46% (annual payments). The following table summarizes the yield to maturity for five-year (annual-pay) coupon corporate bonds of various Aa A Baa Ba B Caa Ratings YTM Aaa 2.59% 2.65% 2.78% 3.19% 4.46% 5.88% 1. Assuming the bonds are rated "Aa", what will the price of the bonds be? 2. How much total principal amount of these bonds must Adam Co. issue to raise $10 million today, assuming the bonds are "Aa" rated? (Because Adam Co. cannot issue a fraction of a bond, assume that all fractions are rounded to the nearest whole number.) 3. What must the rating of the bonds be for them to sell at par? 4. Suppose that when the bonds are issued, the price of each bond is equal $1077.42. What is the likely rating of the bonds? Are they junk bonds? 1. Assuming the bonds are rated "Aa" the price of the bonds should be equal: $ (round 1 digit after decimal point) 2. Assuming the bonds are rated "Aa" the Adam Co. must issue bonds (assume that all fractions are rounded to the nearest whole number) 3. To sell the bonds at par the rating of these bonds must be and these bonds are junk. 4. If the price of each bond is $1077.42 the bond rating must be Chose answer False True