YTM 6.30 HMKE would be to raise to milion to investital expenditures. The company plana avverbonde wth a face value of $1,000 and a coupon rate of 6.50% www payments) The towing wole summer the yield to maturity for tv year annual-payment coupon Corporate bonds of various wings Rating AAA AA BB 5.2014 650% 5.90% 750M a. Assuring the bonds will be A what will be the price of the bonds? D. Jo much of the Wicipe amount of these bonds HMK He to rate 599.0 milion today assuming the bonds er AA rated (Because HK cannot be a fraction of a bord, assurse will factor 3 c. What must be the rating of the bands for them to wear duponu that when the borde wed the profesch bondos What is the key tuting of the bonds? Are they ink bonts? 3. Assuring the bords will be rated what will be the price of the box? The price of the bonds will be a Roud to the nearest cent) b. o odpamount entendo HMK 110. O mening the one wa Mrad? Mos e tener en beter metal actions are unded to the Weber) The number of bonds to Mount up to the rest What is the ring of the words for them war ich schone) A fost o parte come the youth cothe yer 630. Ad On To H Santos, consequency SONO O formations to come they reyes 0 OD: Foro de to wipe the con with the year Soseth when the Wind 0054 What is good is the bond (5) Cick to you . Suppose that when the bonds are issued, the price of each bond is $959.54. What is the likely rating of the bonds? Are they junk bonds? (Select the best choice below. OA Given a yield of 7.50%, it is likely these bonds are rated BB. No, 88-rated bonds are not junk bonds. OB. Given a yold 7.60%, niin Vkely those bonds are rated BB. Yes, BB-rated bonds are junk bonds. OC. Given a ywld of 6.90%, is likely these bonds are rated BBB Yes, B88-rated bonds are junk bonds. OD Given ayudo 6.90%, tistikey those bonds are rated BB. No, Bee-rated bonds are not junk bonds. Click to select your answers) HMK Corries would like to raise $10.0 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 6.50% (annual payments). The follow table sumar the yield to milurity for five yew (annual payment coupon corporate bonds of various ratings Rating AA BBB BB YTM 6206 6.30% 5.50% 6.00% 7.50% Aswing the bonds will be red MA, who will be the price of the bonds 1. How much of the total principal amount of these bende mult Hikinture to raise $10,0 milion today, assuming the bonds eru AA red (Because HMK canet issues tracten of bond, mume that will actions - rounded to the nearl whole tuber) What must be the rating of the bords for them to wilt par? Succo tu when the bonds wird, the price of coch bond is $900 54. What is the they rating of the bonds? Are they punk bonds? Masuming the bonds will be raind AA wat will be the price of the body? The price of the bonds webes Rond to the rest cant) B. How much do ta principal amount of the bons must k 570 in touye torre Mito? (Boute cannet innus a fraction of a bond assume that all actions are munded to the nearest Whole Butter) The number of tends to be in Pound up to the newest ) c. What must be the ruting of the bands for them is selat par? (Select the best choice below) Are bonde o parte coupe me the yield since the con is 50% tud must be 0. of Amed O For the bordet elle con pathy Srotis 6.905 heyed must be 6.0% of rated OC For the bonds to wear the coupon method. Since the coupons 6.50%, the yeld must also be 6.50%, med OD. For the bonds separ, the couen must the yield Shoe the coupon is 8.50% the yuld mustwo. 50, And 4. Wat when there, the profondi Wheeling of andere here the best choice below) Clo to your 4. Suppose that when the bends are issued, the price of each bond is $958.54. What is the likely rating of the bonds? Are they junk bonds? (Select the best choice below) O A. Given a yield of 7.50%, it is likely these bonds we rated BB. No, BB-rated bonds are not junk bonds. OB. Given a yeld of 7.50%. Kis kely these bonds are rated 88. Yes, 88-cuted bonds are junk bonds. OC. Glom a yold 6.50%, ia tikely theme bonds are totod BUB. Yes, 886-rated bonds are junk bonds, OD Olvin a yeld of 0.90%, in the these bonds are ruted B80, No. 600rated bonds are not junk bondo. Click to ect your awwar