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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

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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 S1,000 and a coupon rate of 6.56% (annual payments). The following table summarizes the yield to maturity for five-year (annual payment) coupon corporate bonds of various ratings Rating BB YTM 6.34% 6.56% 6.91% 7.51% 6.13%

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