Question: ( A ) Assume that the above bonds would provide a fair compensation for the risk of investment if YTM had the default spread of

(A) Assume that the above bonds would provide a fair compensation for the risk of investment if YTM had the default spread of 4.50% above todays value of the U.S. Treasury rate with the same maturity.
If the company issuing the above bonds is rated by S&P or Moodys, is the company likely associated with investment or junk (i.e., non-investment) rating?

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