Question: Use the following information to answer the question below. ( R ) and ( B ) are contemplating issuing a 5 -year bond with semi-annual
Use the following information to answer the question below. \\( R \\) and \\( B \\) are contemplating issuing a 5 -year bond with semi-annual coupons, a coupon rate of \7, and a face value of \\( \\$ 1,000 \\). R (Bbelieves it can get a BBB (B) rating from Standard and Poor's for this bond issue. What if they are successful in getting the rating they expect, then which of the following statements are TRUE? a. Both bonds should be issued at the same price as they have the same coupon rates. b. Both bonds should be issued at a discount. c. R's bond should be issued at around \\( \\$ 960 \\) while \\( B \\) 's bond should be issued at around \\( \\$ 921 \\). d. \\( R \\) should be issued at a premium while \\( B \\) should be issued at a discount because R's bond is expected to be rated higher
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