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

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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