Company X would like to issue bonds to finance the purchase of a new factory, but they are having financial difficulties, negatively impacting the credit rating of their existing bonds. Which of the following options could they realistically have to issue new bonds at a favorable interest rate?

Group of answer choices

Issue bonds without promising any collateral, but market the fact that the new factory is projected to substantially increase profitability

Default on the existing bonds

Let the new bonds be senior to the old bonds

Pledge the new factory as collateral for the new bonds