Rating agencies--such as Standard & Poor's Corporation(S&P). Moody's Investor Service, and Fitch Ratings-assign credit ratings to bonds based on both quantitative and qualitative factors. These ratings are considered indicators of the issuer's default risk which impacts the bond's interest rate and the issuer's cost of debt capital. Based on these ratings, bonds are classified into investment-grade bonds and junk bonds. Which of the following bonds is likely to be classified as a Junk bond? A bond with a 888 rating, 14% return on capital, 42% total debt to total capital, and a 10% yild. 0 A bond with a rating an 11% return on capital, a 57 total debt to total capital and a 26 yield. Nou heard that rating agences have upgraded a bond's rating. The yield on the bond is likely to and the bonds price will Assume you make the following investments A $10.000 investment in 10-year T-bond that yields 6.50 and A $20.000 investment in a 10-year corporate bond with a rating and a yield of 8.2048 sed on the normazenad the knowledge that the iterande oudity riak zremiums betere borda a 0.30hwhat is your time of the core bodo premium 1701 1