Rating A 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 $1000 and a coupon rate of 6.56% (annual payments). The following table summarises the yield to maturity for five-year (annual-payment) coupon corporate bonds of various ratings: AAA AA BBB BB YTM 6.11% 6.36% 6.56% 6.98% 7.56% a. Assuming the bonds will be rated AA, what will the price of the bonds be? b. How much of the total principal amount of these bonds must Marlite issue to raise $10.0 rrillion today, assuming the bonds are AA rated? (Because Marlite cannot issue a fraction of a bond, assume that all fractions are rounded to the nearest whole number.) c. What must the rating of the bonds be for them to sell at par? d. Suppose that when the bonds are issued the price of each bond is $959.61. What is the likely rating of the bonds? Are they junk bonds? a. Assurning the bonds will be rated AA, the price of the bonds will be $ (Round to the nearest cent.) b. To raise S10.0 million today, assuming the bonds are AA rated, the number of bonds to be issued is L. (Round up to the nearest integer.) c. What must the rating of the bonds be for them to sell at par? O A. For the bonds to sell at par, the coupon must equal the yield. Since the coupon is 6.36%, the yield must also be 6.36%, or A rated. OB. For the bonds to sell at par, the coupon must equal the yield. Since the coupon is 6.56%, the yield must also be 6.56%, or Araled. OC. For the bonds to sell at par, the coupon must equal the yield. Since the coupon is 6.98%, the yield must also be 6.98%, or BBB rated. OD. For the bonds to sell at par, the coupon must equal the yield. Since the coupon is 6.56%, the yleld must also be 6.56%, or BBB rated. d. Suppose that when the bonds are issued, the price of each bond is $959.61. What is the likely rating of the bonds? Are they junk bonds? O A. Given a yield of 7.56%, it is likely these bonds are rated BB. Yes, BB-rated bonds are junk bonds. OB. Given a yield of 7.56%, it is likely these bonds are rated BB. No, BB-rated bonds are not junk bonds. OC. Given a yield of 6.98%, it is likely these bonds are rated BBB. NO, BBB-rated bonds are not junk bonds. OD. Glven a yield of 6.98%. It is likely these bonds are rated BBB. Yes, BBB-rated bonds are junk bonds