Marlite Engineering 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 6.51 % (annual payments). The following table summarises the yield to maturity for five-year (annual-payment) coupon corporate bonds of various ratings

Rating	AAA	AA	A	BBB	BB
YTM	6.126.12%	6.336.33%	6.516.51%	6.946.94%	7.527.52%

a. Assuming the bonds will be rated AA, the price of the bonds will be $ nothing. (Round to the nearest cent.)

b. To raise $ 10.0 million today, assuming the bonds are AA rated, the number of bonds to be issued is nothing. (Round up to the nearest integer.)

c. What must the rating of the bonds be for them to sell at par? (Select the best choice below.)

A. For the bonds to sell at par, the coupon must equal the yield. Since the coupon is 6.51 %, the yield must also be 6.51 %, or BBB rated.

B. For the bonds to sell at par, the coupon must equal the yield. Since the coupon is 6.33 %, the yield must also be 6.33 %, or A rated.

C. For the bonds to sell at par, the coupon must equal the yield. Since the coupon is 6.94 %, the yield must also be 6.94 %, or BBB rated.

D. For the bonds to sell at par, the coupon must equal the yield. Since the coupon is 6.51 %, the yield must also be 6.51 %, or A rated. d. Suppose that when the bonds are issued, the price of each bond is $ 959.16.

d.What is the likely rating of the bonds? Are they junk bonds? (Select the best choice below.)

A. Given a yield of 6.94 %, it is likely these bonds are rated BBB. Yes, BBB-rated bonds are junk bonds.

B. Given a yield of 7.52 %, it is likely these bonds are rated BB. Yes, BB-rated bonds are junk bonds.

C. Given a yield of 6.94 %, it is likely these bonds are rated BBB. No, BBB-rated bonds are not junk bonds.

D. Given a yield of 7.52 %, it is likely these bonds are rated BB. No, BB-rated bonds are not junk bonds