Question: Use the following information to answer the question below. Target is contemplating issuing a 4-year bond with semi-annual coupons. It is trying to predict the
Use the following information to answer the question below. Target is contemplating issuing a 4-year bond with semi-annual coupons. It is trying to predict the bond rating with two bond issue possibilities. i) If target believes it can get a BBB rating from Standard and Poor's for this bond issue, it will set the coupon rate at \8 per year. ii) If Target believes it can get a AAA rating from Standard and Poor's for this bond issue, it will set the coupon rate at \10 per year
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