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 51.000 and a coupon rate of 6.50% (annual payments). The following table summarces the yield to maturity for five year (annual payment coupon corporate bonds of various cing Rating AAA A BBB BB YTM 6 20% 6.30% 6 50% 6 90% 7.50% a. Assuming the bonds will be rated M, what will be the pnce of the bonds? b. How much of the total principal amount of these bonds must HMK issue to raise $100 million today, assuming the bonds are Mrated? (Because MK and issues 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 $959 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 cent) b. How much of the total principal amount of these bonds must HMK issue to raise $10 million today, assuming the bonds are AA tatod? (Because HMK cannot issue a fraction of a bond assume that all fractions are rounded to the nearest whole number) The number of bonds to be issued is (Round up to the nearest integer) c. What must be the rating of the bonds for them to sell at par? (Select the best choice below) O A. For the bonds to sell at par, the coupon must equal the yield. Since the coupon is 630%, the yield must also be 6.30% or A rated OB. For the bonds to sell at par, the coupon must equal the yield Since the coupon is 6 50% the yield must also be 6 50% or BBB rated OC. For the bonds to sell at par, the coupon must equal the yield Since the coupon is 6.506, the yield must also be 6.50% or Arsted OD. For the bonds to sell at par, the coupon must equal the yield Since the coupon is 6 90% the yield must also be 6.90% or BBs rated Click to select your answer(s)