apes would be 10. 113 nition to wait n capito coord. The compary plans to me te verterde whate vald 31.000 de con la resta permes. The tothom havet mahnity for freyear con corporate bonds of Rating AAA 300 BB VTM 70 Askumng the bords will be rated AA what will pres of the AA-rated bonds te? B. How much total principal amounterwese bond HUK tomte 13 milion today, nghe border Mee UK care faction of a bond that a red to the s. What the rating of the bonds before to sell apo? Supone that when the bonds and price of each and is soos wat is the key rating of the bonds? Are they junt bona? Nola Adunarul compounding Assume the bonds will be rated At what will the price of the AA et bonds The now of the bonds wit be found to the reseat cent) Save HMK Enterprises would like to raise $13 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 8.1% (arvual payments). The following table summarizes the yield to maturity for five-year (annual-pay) coupon corporate bonds of various ratings Rating AAA AA A BBB YTM (%) 76 7.8 81 8.6 88 a. Assuming the bonds will be rated AA, what will the price of the AA rated bonds be? b. How much total principal amount of these bonds must HMK issue to raise $13 milion today, assuming the bonds are A ruled (Because HMK cannot issue a fraction of a bord, assur all fractions are rounded to the nearest whole number.) c. What must the rating of the bonds be for them to sell at par? Han tut when the one the wine of each ind i 1972 A2 What is the likely rating of the line? Ar tinka? Cea a. Assuming the bonds will be rated AA. what will the price of the AA-rated bonds be? Rating AAA AA YTM (%) BOB BB 7.6 7.8 8.1 8.6 88 a. Assuming the bonds will be rated AA, what will the price of the AA rated bonds be? b. How much total principal amount of these bonds must HMK issue to raise $13 milion today, assuming the bonds are AA rated? (Because HMK cannot issue a fraction of a bond, une all fractions are rounded to the nearest whole number) c. What must the rating of the bonds be for them to sell at par? d. Suppose that when the bonds are issued, the price of each bond is $97263. What is the likely rating of the bonds? Are they junk bonds? Note: Assume annual compounding a. Assuming the bonds will be rated AA, what will the price of the AA-rated bonds be