help from a to d
HMK Eroprises would like to raise $10.0 million to invest in capital expenditures. The company pans to ese five-year bonds with a set of $1.000 and a coupon cate of 8.50 They table summarizes the yield to matury for five year annual payment coupon corporate bonds of wis ratings Rating AAA AA A Bas BB VTM 20% 6.30 6.50% 60 7509 a. Asuming the bonds will be rated AA What will be the price of the bonds? b. How much of the cheap amount or those bonde must Kontorse 100 milion today somebordersted ca. rounded to the nearest whole rumber c. What must be the rating of the bonds for them to sell d. Suppose that when the bonds an issued. The price of each bond is 0605 What is the key torg of the borde? Are they told a. Assuming the bonds will be rated A, what will be the price of the bonds? The price of the bonds will be (Round to the nearest.com Question Help 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 6.50% (annual payments). The following table summarizes the yield to maturity for five-year (annual-payment) coupon corporate bonds of various ratings Rating AAA AA BBB BB YTM 6,20% 6.30% 6,50% 6.90% 7.50% a. Assuming the bonds will be rated AA what will be the price of the bonds? 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 of a bond, assume that all fractions are rounded to the nearest 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 $950.54. What is the likely rating of the bonds? Are they junk bonds? a. Assuming the bonds will be rated AA, what will be the price of the bonds? The price of the bonds will be $). (Round to the nearest cont.)