ques 6.26

Marine Engineering would like to raise $10 million to invest in capital expenditures. The company plans to issue ve year bonds with a face of 1000 and a couponre of 6.51% ( au patent). The flowing the summarises the yield to maturity for five year (annual-payment coupon corporate bonds of various ratings Rating AAA AA YTM 6.515 695 7.518 Assuming the bonds will be ruled M, what wil the price of the bonds be? b. How much of the total principal amount of these bonds must Marite issue to raise $100 million today, assuming the bords are A rated? (Because Marie cannot issue a fraction of a bond, assume that all fractions are rounded to the newest whole number) c. What must the rating of the bonds be for them to sell apar? d. Suppose that when the bonds are issued, the price of each bond is 5090.56. What is the likely rating of the borde? Are they punk bords