Problem 2 (3 points)
	HMK Enterprises would like to raise $10 million to invest in capital expenditures. The company plans to issue five-year bonds with a face value of $1000 and a coupon rate of 6.5% (annual payments). The following table summarizes the yield to maturity for five-year (annual-pay) coupon corporate bonds of various ratings:
		Rating	AAA	A	BB
		Yield to maturity	6.20%	6.50%	7.50%
		Maturity	5
		Face value	1,000.00
		Coupon rate	6.50%
		Price of bonds with various ratings	AAA	A	BB