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19) curity: AAA Corporate 56 AA Corporate A Corporate BBB Corporate BB Corporate ield (%): A mining company needs to raise $100 million in order

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19) curity: AAA Corporate 56 AA Corporate A Corporate BBB Corporate BB Corporate ield (%): A mining company needs to raise $100 million in order to begin open-pit mining of a coal seam. The company will fund this by issuing 30-year bonds with a face value of $1,000 and a coupon rate of 6.5%, paid annually. The above table shows the yield to maturity for similar 30-year corporate bonds of different ratings. If the company's bonds are rated A, what will be their selling price? A) $1265.37 B) $1476.27 C) $1054.48 D) $843.58 ecurity: Treasry AAAooate BBB CorporateBCorporate ield (90): 5.2 The above table shows the yields to maturity on a number of two-year, zero-coupon securities. What is 2 it spread on a two-year, zero-coupon corporate bond with a BBB rating? A) 2.4% B) 2.0% C) 2.8% D) 1.6%

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