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help me answer this, and explain the answer too. Exercise 1 (10%) Zion Lid plans to raise $20m to invest in capital expenditures and to

help me answer this, and explain the answer too.

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Exercise 1 (10%) Zion Lid plans to raise $20m to invest in capital expenditures and to issue 5-year bonds with a face value of $1000 and a coupon rate of 5.2%, to be paid annually. The table below summarizes the yield to maturity for 5-year (annual payment) coupon corporate bonds and their ratings. Rating AAA AA BBB YTM 4:30% 4.90% 5.20% 6.10% 7.50% a) What will the price of the bonds be for AAA rated bonds? b) How much principal amount of the AAA rated bonds must Zion issue to raise $20m today? c) What must the rating of the bonds be for them to sell at par? d) How must a bond be rated for it to have a price of $906.94

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