You are an intern with an automobile company in its corporate finance division. The company is planning to issue $$10$ million of $10\%$ annual coupon

bonds with at $10$ year maturity. The company anticipates an increase in its bond rating. Your boss wants you to determine the $8$ ain in the proceeds of the

new issue if it is rated above the firm's current bond rating. To prepare this information, you will have to determine the firm's current debt rating and the

yield curve for its particular rating. The following table shows the information.